The Worst Remedy for Curing the U

question 103

Multiple Choice

The worst remedy for curing the U.S.trade deficit is to

• A)increase U.S.personal saving.
• B)reduce the budget deficit.
• C)encourage all nations to lower trade barriers.
• D)limit imports by imposing tariffs, quotas, and other trade restrictions.

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Definitions:

Surplus

An excess of production or supply over demand, often leading to lower prices.

Market Economy

An economic system where supply and demand from consumers and producers determine the production of goods and services.

Free Stuff

Items or services offered without charge, usually as part of a promotional strategy or as incentives.

Private Good

A type of good that is rivalrous and excludable, meaning its consumption by one individual prevents others from consuming it.