During recent times, the United States has been running a trade deficit (our exports of goods and services have been less than our imports of goods and services). Which of the following is true regarding these trade deficits?

Question

Quizplus · Accepted Answer

Trade deficits are often caused by a combination of factors, such as domestic economic growth stimulating imports and foreign investment inflows. While trade deficits do contribute to a country's overall debt, they do not necessarily weaken future economic conditions. Finally, trade deficits may be a result of unfair trade practices, but not all deficits are evidence of such practices.

During Recent Times, the United States Has Been Running a Trade