Which argument about keeping the money at home is a counterargument free traders give?

Question 49 options:

Money that goes abroad will come back again when other nations buy our exports.

Limiting imports keeps money from going abroad so that it can be spent domestically.

Limiting imports keeps jobs at home.

Question

Brendon

Business

28 March, 11:57

Which argument about keeping the money at home is a counterargument free traders give?

Question 49 options:

Money that goes abroad will come back again when other nations buy our exports.

Limiting imports keeps money from going abroad so that it can be spent domestically.

Limiting imports keeps jobs at home.

+1

Answers (2)

Know the Answer?

Cindy Hurley · Answer 1

Money that goes abroad will come back again when other nations buy our exports.

Explanation:

If the trade balance is positive and there is a surplus the money paid to other countries in imports will comeback in the money received by exports.

Larissa Coffey · Answer 2

The correct answer would be option A, The money that goes abroad will come back again when other nations buy our exports.

Explanation:

Keeping money at home means, keeping money within the country. So the traders who do not wish to trade their products outside the country usually give counterargument on this like money goes abroad as a result of imports, will come back to the country again, as a result of the exports, because other countries buy our products and send us money, which means our money will come back eventually. But they normally forget that to achieve this balance, there should be an accurate balance between the imports and exports of the country.