Increasing U.S.trade deficits result in:

Name: Increasing U.S.trade deficits result in:
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Question

Quizplus · Accepted Answer

Increasing trade deficits result in foreign countries holding more U.S. dollars, which eventually leads to an accumulation of dollars overseas. This can result in a decrease in the value of the dollar or an increase in demand for U.S. exports, but it does not result in federal budget surpluses, increased U.S. savings, reduced purchases of U.S. government bonds, or increased U.S. investment abroad.

Increasing U.S.trade Deficits Result In