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Chapter 2—International Flow of Funds 1. Recently, the U.S. experienced an annual balance of trade representing a ____. a. large surplus (exceeding $100 billion) b. small surplus c. level of zero d. deficit ANS: D PTS: 1 2. A high home inflation rate relative to other countries would ____ the home countrys current account balance, other things equal. A high growth in the home income level relative to other countries would ____ the home countrys current account balance, other things equal. a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase