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61.

If the increase in exports exceeds the increase in imports, and other things remain the same, then the level of income will:

A.	Rise	B.	Remain the same
C.	Fall	D.	Move in an uncertain manner

62.

Which of the following was not favoured by the mercantilists?

A.	Accomulation of gold by the country	B.	Free trade
C.	Export promotion	D.	Import restriction

63.

Of the following concepts of term of trade, which one was introduced by F.W. Taussig?

A.	Income terms of trade	B.	Commodity terms of trade
C.	Real cost terms of trade	D.	Double fact oral terms of trade

64.

Dynamic factors in the realm of international trade theory relate to changes in:

A.	Income	B.	Factor endowments
C.	Technical knowledge and methods of production	D.	All of the above

65.

The devaluation of currency by a country is designed to lead to:

A.	Expansion of the export trade	B.	Contraction of import trade
C.	Promotion of import substitution	D.	All of these

66.

What would be the impact on the country's balance of payments position, when in the context of inflationary pressures recourse is taken to expenditure reducing policies?

A.	Highly unfavourable	B.	Unfavourable
C.	Favourable	D.	Neutral

67.

Which of the following items in the balance of payments is invisible?

A.	Government expenditure abroad	B.	Foreign investment
C.	Foreign travel	D.	Goods exported

68.

If the elasticity of foreign demand for the country's exports is unity, the supply curve of foreign exchange will be:

A.	Backward bending	B.	Vertical
C.	Positively sloping from left to rigt	D.	Horizontal

69.

A deficit disequilibrium in the balance of payments can be corrected through:

A.	Devaluation	B.	Monetary squeeze
C.	Exchange controls and import quotas	D.	All of the above

70.

The spot and forward markets in foreign exchange are linked to each other through:

A.	Interest arbitrage	B.	Hedging
C.	Speculation	D.	All of the above