Asked by
Amelia Stone
on Nov 26, 2024Verified
Which of the following factors has helped maintain the large U.S. trade deficits over the years?
A) a decline in investment
B) capital and financial account surpluses
C) a decrease in economic growth
D) an increase in U.S. net exports
Trade Deficits
An economic measure where a country's imports exceed its exports over a certain period, indicating an outflow of domestic currency to foreign markets.
Capital and Financial Account
Components of a country's balance of payments, recording the transactions of assets and liabilities, such as direct investments, portfolio investments, and other investments across borders.
Net Exports
The value of a country's total exports minus the value of its total imports, indicating the balance of trade.
- Analyze the effects of trade shortfalls and the financing mechanisms used to cover them.
- Examine the causes and effects of extensive trade deficits in the United States.
Verified Answer
2A
Learning Objectives
- Analyze the effects of trade shortfalls and the financing mechanisms used to cover them.
- Examine the causes and effects of extensive trade deficits in the United States.