The US Trade Deficit Is Most Likely to Be Harmful in in the Future

question 33

Multiple Choice

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

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