Suppose the United States Experiences an Increase in Its Trade

question 144

Multiple Choice

Suppose the United States experiences an increase in its trade deficit.Which of the following is a possible explanation for this growing trade deficit? There has been a(n)

• A) decrease in U.S.interest rates.
• B) increase in the U.S.savings rate.
• C) economic expansion in the United States.
• D) decrease in the U.S.budget deficit.
• E) increase in foreign interest rates.

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Definitions:

Obsolete Desk Calculators

Desk calculators that are no longer considered efficient or useful due to advancements in technology or changes in user needs.

Inventory

The total amount of goods a company has in stock, including raw materials, work-in-process, and finished goods.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs.

Relevant Costs

Costs that will be affected by a decision in a particular situation, excluding sunk costs and costs that do not differ between alternatives.