One of the Major Reasons Why the US Trade Deficit

question 145

Multiple Choice

One of the major reasons why the US trade deficit with China has grown in the last 10 years is that

• A) the Yuan is seriously undervalued relative to where it would need to be to lead to a zero trade deficit.
• B) the yuan is seriously overvalued relative to where it would need to be to lead to a zero trade deficit.
• C) currency markets can never bring trade into balance,even in the long run.
• D) US productivity has fallen recently.
• E) the U.S.has suffered two sharp recessions.

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Definitions:

Incidence

The number of new cases of a disorder in a particular population over a specified time period, usually a year.

Prevalence

Indicates how common or widespread a disease, condition, or characteristic is within a specific population at a given time.

Anorexia Nervosa

An eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to self-imposed starvation and severe weight loss.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by self-starvation, an intense fear of gaining weight, and a distorted body image.