The U.S. trade deficit is most likely to be harmful in the future if:

A. U.S. citizens refuse to lend to foreigners as a result of it.
B. U.S. citizens continue to accumulate foreign assets.
C. U.S. production continues to exceed U.S. consumption.
D. the inflow of financial capital associated with the current deficit does not finance productive investment.


Answer: D

Economics

You might also like to view...

Improved quality in health care services is partly responsible for increases in health care costs in the United States

Indicate whether the statement is true or false

Economics

If you lost 20 percent on $100 worth of stock in a 2x margin account, then you would:

A. lose $40. B. gain $40. C. lose $20. D. gain $20.

Economics

Preservation of national security is one argument in favor of trade restrictions.

Answer the following statement true (T) or false (F)

Economics

Sarah buys little stuffed animals for $5 each. They come in different varieties. If the producer stops making (retires) a certain variety, a stuffed animal of that variety will be worth $100; otherwise it is worth $0. There is 50% chance that any variety will be retired. When Sarah buys her next stuffed animal, the expected profit is

A) $50. B) $47.50. C) $45.00. D) $0.

Economics