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If the World Supply Curve Is SW0, and the Country

Question 17

Multiple Choice

If the world supply curve is SW0, and the country discovers a significant natural resource that can be exported, the world supply curve will shift: If the world supply curve is S<sub>W0</sub>, and the country discovers a significant natural resource that can be exported, the world supply curve will shift: A) down and the trade balance will become a deficit. B) down and the trade balance will become a surplus. C) up and the trade balance will become a deficit. D) up and the trade balance will become a surplus.


A) down and the trade balance will become a deficit.
B) down and the trade balance will become a surplus.
C) up and the trade balance will become a deficit.
D) up and the trade balance will become a surplus.

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