Post Utme Igbinedion University 2024 Economics Question 24
Practice objective / multiple choice question 24 from the 2024 Post Utme Igbinedion University Economics examination.
Consider a small open economy with a fixed exchange rate. The country's trade balance is given by the equation: TB = \( X - M \) + \( F - I \), where TB is the trade balance, X is the value of exports, M is the value of imports, F is the foreign aid, and I is the investment. If the country's exports increase by 10% and imports decrease by 5%, while foreign aid increases by 2% and investment remains cons\tant, what is the new trade balance?
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This is Post Utme Igbinedion University 2024 Economics Question 24. It is one of the objective questions from the 2024 Post Utme Igbinedion University Economics examination.
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