Statement I: China and Japan Have Continued to Finance the Huge

question 40

Multiple Choice

Statement I: China and Japan have continued to finance the huge U.S.trade deficit because the large American consumer market allows them to expand their production and create jobs for their citizens.
Statement II: China and Japan finance over half the U.S."twin deficits," the trade and federal budget deficits.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Efficiently

The ability to achieve a desired result or produce a desired output with the least amount of waste, effort, or inefficiency.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, assuming all resources are fully and efficiently utilized.

Unemployment Rate

The slice of the labor pool actively seeking employment but currently unemployed.