The Trade Deficit Is the Mirror Image of the Required

question 184

Multiple Choice

The trade deficit is the mirror image of the required capital inflows.So why worry about these capital inflows?

• A)Trade deficits automatically cause larger budget deficits.
• B)Before long, the Germans, Japanese, and other foreigners will own the United States and will be dictating policy to the U.S.government.
• C)These capital inflows create debts on which interest and principal payments will have to be made in the future.
• D)During the period of trade deficits, personal consumption must be reduced to build up wealth to repay the debt created.

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Definitions:

Prostaglandins

A group of lipid compounds that are involved in various physiological processes, including inflammation and pain.

Ejaculation

The release of semen from the male reproductive system during sexual arousal.

Smooth Muscle

A type of muscle found in the walls of hollow organs, such as blood vessels and the digestive tract, that contracts involuntarily.

Urethra

The duct through which urine is discharged from the bladder to the outside of the body in both males and females and through which semen is discharged in males.