Which of the following statements about the balance of trade is FALSE?
A) When a country exports more than it imports, it has a balance of trade deficit.
B) The excess of imports over exports decreases the dollar's buying power against foreign
currencies.
C) Since the late 1980s, the United States has experienced an export boom that has given us
a balance of trade surplus with Western Europe.
D) A poor balance of trade exacerbates unemployment.
E) A decline in the dollar makes American products cheaper abroad and increases exports.
Answer: A
AP Government
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