The balance of payments has become a central issue for the United States because
A) when the balance of payments is not balanced, society is unbalanced.
B) the U.S. economy cannot grow when the balance of payments is in deficit.
C) the U.S. has run huge trade deficits in every year since 1982.
D) the U.S. never experienced a surplus in its balance of payments.
E) the U.S. once ran a large trade surplus of about $40 billion.

Question

Quizplus · Accepted Answer

The statement mentions that the balance of payments has become a central issue for the United States because the country has run huge trade deficits in every year since 1982. This suggests that option C is the best choice as it directly addresses the main issue mentioned in the statement. Option E is incorrect as it mentions a past trade surplus which is not relevant to the current issue. Option A is incorrect as it is too general and does not specifically address the issue of the balance of payments. Option D is incorrect as it is not true - the US has experienced balance of payments surpluses at certain times in its history. Option B is also incorrect as it is too extreme - the US economy can still grow with a balance of payments deficit, although it may have some negative effects.

The Balance of Payments Has Become a Central Issue for the United