Relatively rapid U.S. growth between 2002 and 2007 contributed to large U.S. trade deﬁcits by
A) increasing U.S. national income, which decreased U.S. exports.
B) reducing real interest rates in the United States.
C) increasing U.S. tax revenues and reducing the federal budget deﬁcit.
D) increasing U.S. national income, which increased U.S. imports.

Question

Quizplus · Accepted Answer

Relatively rapid U.S. growth between 2002 and 2007 increased U.S. national income, which made U.S. citizens wealthier and able to purchase more goods, including imports from other countries, thus contributing to large U.S. trade deficits.

Relatively Rapid U