One of the consequences of the U.S. trade deﬁcit is that

Question

Quizplus · Accepted Answer

The accumulation of American dollars in foreign hands due to the U.S. trade deficit allows those foreign entities to invest in the U.S., including building factories. This is a direct consequence of the trade deficit, as foreign countries earn more U.S. dollars through exports than they spend on U.S. imports, leading to an accumulation of dollars that can be invested back into the U.S. economy.

One of the Consequences of the U