If the United States Is Running a Trade Deficit This

question 60

Multiple Choice

If the United States is running a trade deficit this year, it also must ________ now, and in the long run, ________.

• A) lend to China; run balanced trade with China.
• B) borrow from China; run a trade surplus
• C) lend to China; run balanced trade with China
• D) lend to China; run a trade deficit
• E) Not enough information is given.

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Definitions:

Obsolescence

The process of losing value or utility, often due to technological advancements, changes in consumer preferences, or wear and tear.

Quality of Receivables

An assessment of the likelihood that the amounts owed to a business by its debtors will be collected.

Likelihood of Collection

An assessment of the probability that accounts receivable or other debts will be successfully collected from debtors.

Factoring Fee

A charge assessed by a factoring company for providing cash advances to businesses by purchasing their accounts receivable at a discount.