The UStrade Deficit Is Most Likely to Be Harmful in the the Future

question 24

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 it does not finance productive investment.
• D)U.S.citizens refuse to lend to foreigners as a result of it.