Suppose the United States spends more on foreign goods and services than foreigners spend on our goods and services and the United States sells no foreign assets. Then the

Question

Quizplus · Accepted Answer

If the United States spends more on foreign goods and services than foreigners spend on our goods and services and the United States sells no foreign assets, then the country is running a trade deficit. To continue purchasing more imports than exports, the United States must borrow an amount equal to the excess imports, which is imports minus exports. Therefore, choice C is the best answer.

Suppose the United States Spends More on Foreign Goods and Services