A US Trade Deficit Will Cause All of the Following Phenomena

question 104

Multiple Choice

A U.S. trade deficit will cause all of the following phenomena except:

• A)U.S. assets will have to be sold to foreigners.
• B)future interest and profits from assets sold to foreigners must be paid to them.
• C)future consumption must decrease to pay for the current excess of imports over exports.
• D)production must eventually increase.

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Definitions:

James Hutton

Known as the father of modern geology, he proposed the theory of uniformitarianism, which suggests that Earth's features developed through long-term processes still observable today.

Earlier Views

The perspectives, hypotheses, or theories that prevailed in scientific or cultural contexts before current understandings.

Geology

The science that deals with the Earth's physical structure and substance, its history, and the processes that act on it.

Traits Evolve

The process by which characteristics or traits of organisms change over generations through natural selection and genetic drift.