If countries decide they will no longer buy U.S. assets or lend to the United States:
A) adjustments will be set in motion to equalize comparative advantages.
B) adjustments will be set in motion so that the United States has more comparative advantages.
C) the United States can begin to run a trade deficit.
D) There is no reason foreign countries will not want to buy more U.S. assets than the United States buys of foreign assets.

Question

Quizplus · Accepted Answer

If countries stop buying U.S. assets or lending to the U.S., adjustments in trade and capital flows will occur to restore balance, affecting comparative advantages.

If Countries Decide They Will No Longer Buy U