One Thing We Can Do to Reduce Trade Imbalance in the United

question 201

Multiple Choice

One thing we can do to reduce trade imbalance in the United States would be to

• A)push down the value of the dollar relative to other currencies.
• B)raise the prices of U.S.exports.
• C)raise consumption in the United States.
• D)lower savings in the United States.

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Definitions:

Import Competition

The competition that domestic firms encounter from the products and services of foreign producers.

Trade Barriers

Regulations or policies implemented by countries to control the import and export of goods and services.

Import Quotas

Limits set by a government on the quantity or value of certain goods that can be imported into a country.

Domestic Producers

Companies or individuals that produce goods and services within their own country.