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

Question

Quizplus · Accepted Answer

When exports are lower than imports, it means that the United States is importing more goods than it is exporting, leading to a trade deficit. To pay for these imports, the United States has to borrow from other countries. Therefore, choice A is correct.

If Our Exports Are $2