In order to pay foreigners interest on the debt, the United States must:
A)increase imports and exports by the same amount.
B)reduce imports and exports by the same amount.
C)export more than it imports.
D)import more than it exports.

Question

Quizplus · Accepted Answer

To pay foreigners interest on the debt, the United States must generate a surplus in its current account, which means it needs to export more than it imports. This surplus provides the currency needed to pay the interest without depleting reserves.

In Order to Pay Foreigners Interest on the Debt, the United