A Trade Deficit Can Be Financed in All of the Following

question 14

Multiple Choice

A trade deficit can be financed in all of the following methods except by:

• A)borrowing from foreigners.
• B)selling domestic assets to foreigners.
• C)selling foreign assets owned by domestic residents to foreigners.
• D)borrowing from domestic lenders.

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Definitions:

US

Refers to the United States, a country located primarily between Canada and Mexico, composed of 50 states, a federal district, five major self-governing territories, and various possessions.

CS

Acronym for Conditioned Stimulus, a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Adaptability

The ability to adjust to new conditions or environments, demonstrating flexibility and resilience.

Cognition

Gaining understanding and knowledge through the processes of thought, life experiences, and sensory engagement.