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olivegnu327Lv1
18 Aug 2020
Are federal budget deficits related to trade deficits?
A. Yes. If U.S. consumers buy too many imported goods they don't have money to save and a budget deficit results.
B. No. The budget deficit is entirely a domestic matter while the trade deficit only affects U.S. citizens who travel abroad.
C. Yes. As deficit spending goes up, it is likely government borrowing will, too. Then foreign residents who lend funds to the U.S. government have less to spend on our goods, so U.S. exports will fall.
D. Yes, but only if the quality of U.S. goods and services is deteriorating.
Are federal budget deficits related to trade deficits?
A. Yes. If U.S. consumers buy too many imported goods they don't have money to save and a budget deficit results.
B. No. The budget deficit is entirely a domestic matter while the trade deficit only affects U.S. citizens who travel abroad.
C. Yes. As deficit spending goes up, it is likely government borrowing will, too. Then foreign residents who lend funds to the U.S. government have less to spend on our goods, so U.S. exports will fall.
D. Yes, but only if the quality of U.S. goods and services is deteriorating.
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Joshua StredderLv10
14 Oct 2020