What are the effects on U.S. imports and exports when the U.S. experiences economic growth stronger than its major trading partners?
A) U.S. imports will increase more than U.S. exports.
B) U.S. exports will increase more than U.S. imports.
C) U.S. imports will decrease, but U.S. exports will increase.
D) There will be no effect on U.S. imports and exports.

Question

Quizplus · Accepted Answer

When the U.S. economy grows faster than its major trading partners, American consumers and businesses have more income and are likely to increase spending on goods, including those imported from abroad. This leads to an increase in imports. Meanwhile, if the economies of the trading partners are growing more slowly, their demand for U.S. goods (exports) may not increase as much, leading to a scenario where imports increase more than exports.

What Are the Effects on U