If our exports are $2.2 billion and our imports are $2.7 billion,
A) U.S. national saving is too high.
B) the United States is borrowing from the rest of the world.
C) the United States is lending to the rest of the world.
D) U.S. investment must decrease.

Question

Quizplus · Accepted Answer

If the value of imports is higher than the value of exports, it means that the United States is buying more from the rest of the world than it is selling to them. This creates a trade deficit and the United States must borrow money from the rest of the world to pay for its excess imports. Therefore, choice B is the correct answer.

If Our Exports Are $2