The US Trade Deficit Has Been Mainly Caused By

question 65

Multiple Choice

The U.S. trade deficit has been mainly caused by:

• A)production of inferior goods in the U.S.
• B)unfair trade restrictions imposed by other countries on imports.
• C)a low rate of national saving.
• D)cheap labor in other countries.

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Definitions:

Government Spending Cuts

Government Spending Cuts involve the reduction of public sector expenditure in an attempt to balance budgets and reduce deficits.

Multiplier

In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it.

GDP

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Spending Changes

Alterations in the amount of money that consumers, businesses, and governments expend on goods and services.