Samantha,a U.S.citizen,travels to Australia and spends $3,500 on souvenirs and clothing.She is contributing to the _____.

Question

Quizplus · Accepted Answer

When a U.S. citizen spends money abroad, it counts as an import, which means money is flowing out of the U.S. economy to another country. This contributes to a balance of payments deficit for the U.S., as it increases the amount of money leaving the country compared to what is coming in.