Post Utme Caleb University 2023 Economics Question 26

Practice objective / multiple choice question 26 from the 2023 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2023 Economics Objective / Multiple Choice
Question 26 POST_UTME_CALEB_UNIVERSITY • 2023 • ECONOMICS • objective

Consider a country with a large trade deficit. If the country's exchange rate is fixed, what would be the effect on the balance of payments?

Answer Options

A. The trade deficit would increase due to a decrease in exports.
Correct Answer B. The trade deficit would decrease due to an increase in imports.
C. The trade deficit would remain unchanged due to a balance in exports and imports.
D. The trade deficit would increase due to a decrease in imports.
Correct Answer
B
Correct Option:
The trade deficit would decrease due to an increase in imports.

About This Question

This is Post Utme Caleb University 2023 Economics Question 26. It is one of the objective questions from the 2023 Post Utme Caleb University Economics examination.

View More Post Utme Caleb University 2023 Economics Questions More Post Utme Caleb University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support