Faster economic growth in the United States relative to other nations tends to worsen the U.S. trade deficit.

Question

Quizplus · Accepted Answer

Faster economic growth in the United States relative to other nations typically increases demand for imports as consumers and businesses have more income to spend, while the demand for exports may not rise as much if growth is slower in other countries. This can lead to a larger trade deficit.

Faster Economic Growth in the United States Relative to Other