The trade deﬁcit has had the effect of
A) decreasing the Federal budget deﬁcit.
B) increasing economic growth in less-developed nations.
C) increasing direct foreign investment in the United States.
D) decreasing protectionist pressure among U.S. businesses.

Question

Quizplus · Accepted Answer

A trade deficit can lead to increased foreign investment in the U.S. as foreign entities use their surplus dollars to invest in U.S. assets.

The Trade Deﬁcit Has Had the Effect of