Explanation: The balance of trade, commercial balance, or net exports, is the difference between the monetary value of a nation's exports and imports over a certain time period. Sometimes a distinction is made between a balance of trade for goods versus one for services . Net exports are the value of a country's total exports minus the value of its total imports. It is a measure used to aggregate a country's expenditures or gross domestic product in an open economy. The reduction in imports will increase the net exports of the country which under answer A. The exchange rate has an effect on the trade surplus (or deficit), which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive.The balance of trade influences currency exchange rates through its effect on the supply and demand for foreign exchange. When a country's trade account does not net to zero that is, when exports are not equal to imports there is relatively more supply or demand for a country's currency, which influences the price of that currency on the world market
The correct answer is letter "D": The higher the expected rate of return, the wider the distribution of returns.
The rate of return(RoR) is the earnings an asset generates in excess of its initial cost. The amount is usually expressed as an annualized percentage rate. The RoR estimates grow between two given periods. The spread of the returns directly depends on how high those returns are: the higher, the wider distribution and vice versa.
According to diminishing marginal utility, the utility of consuming an extra unit increases until a point. After that, the utility tends to diminish from consuming an extra unit. The marginal benefit to society of reducing pollution declines due to diminishing marginal utility concept. The benefit of a decrease in pollution starts to decline after a certain period of time.