One of the Principal Factors Behind the U

question 22

Multiple Choice

One of the principal factors behind the U.S.trade deficits of the 1990s has been

• A)slow growth and recession in many important trading partners.
• B)rapid growth and inflation in many important trading partners.
• C)significant depreciation of the dollar.
• D)rising real interest rates in the United States.

---

Definitions:

Government Spending

Expenditure by the government in any given period, typically on public services, defense, infrastructure, and social welfare programs.

Regulation

Rules or directives made and maintained by an authority to regulate behavior, usually in the context of business, financial markets, or a profession.

Expansionary Monetary Policy

A central bank policy aimed at increasing the money supply to stimulate economic growth by lowering interest rates and increasing liquidity.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicating improvement in living standards.