In order for the United States to have a surplus of exports over imports to repay its international debt, the United States would need to
A) increase consumption and decrease saving.
B) increase consumption and increase saving.
C) decrease consumption and decrease saving.
D) decrease consumption and increase saving.

Question

Quizplus · Accepted Answer

To repay its international debt through a surplus of exports over imports, the United States would need to decrease consumption (which reduces imports) and increase saving (which can be used to invest in export-oriented industries). This combination would help the country export more than it imports, generating the surplus needed to repay international debt.

In Order for the United States to Have a Surplus