Suppose the fictional country of Wallstona is under pressure from its trading partners to decrease its trade surplus.
Which of the following would help decrease Wallstona's trade surplus? Check all that apply.
a) Encouraging the economy of Wallstona to grow more quickly than the economies of Wallstona's trading partners
b) Increasing government expenditure while holding taxes, saving, and investment constant
True or False: If the government of Wallstona lowers its trade surplus by repealing tariffs, Wallstona can expect an increase in imports but no changes in either the government deficit or the gap between saving and investment.