If Countries Decide They Will No Longer Buy U

question 49

Multiple Choice

If countries decide they will no longer buy U.S.assets or lend to the United States:

• A)adjustments will be set in motion to equalize comparative advantages.
• B)adjustments will be set in motion so that the U.S.has more comparative advantages.
• C)the United States can begin to run a trade deficit.
• D)There is no reason foreign countries will not want to buy more U.S.assets than the U.S.buys of foreign assets.

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Definitions:

Sympathetic

Relating to the sympathetic nervous system, part of the autonomic nervous system that orchestrates the body's rapid involuntary response to dangerous or stressful situations.

Sympathetic

Pertaining to the part of the autonomic nervous system that increases heart rate, constricts blood vessels, and raises blood pressure, typically in response to stress.

Parasympathetic

Part of the autonomic nervous system responsible for conserving energy and bringing the body to a state of rest by slowing the heart rate and increasing intestinal and gland activity.

Autonomic Nervous System

The segment of the nervous system responsible for regulating automatic body functions such as digestion, heartbeat, and breathing rate.