Question : The foreign trade effect suggests that an increase in the price level:

Option 1: Increases imports and decreases exports
 

Option 2: Decreases imports and increases exports
 

Option 3: Increases both imports and exports

Option 4: Decreases both imports and exports

Question : Which of the following best describes appreciation of currency:

Option 1: Imports become costlier
 

Option 2: Exports become cheaper
 

Option 3: Imports become cheaper

Option 4: No effect on Exports

Question : What is the impact of a stronger domestic currency on a country's imports and exports?

Option 1: Increase in imports, decrease in exports
  

Option 2: Decrease in imports, increase in exports
   

Option 3: Increase in imports, increase in exports

Option 4: Decrease in imports, decrease in exports

Question : What is a trade surplus?

Option 1: When a country exports more than it imports

Option 2: When a country imports more than it exports

Option 3: When a country has no trade

Option 4: When a country has a deficit in trade

Question :  What is a trade deficit?

Option 1: When a country imports more than it exports

Option 2: When a country exports more than it imports

Option 3: When a country has no trade

Option 4: When a country has a surplus in trade