A large tax cut in the United States should lead to an increase in the trade deficit.

Name: A large tax cut in the United States should lead to an increase in the trade deficit.
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Question

Quizplus · Accepted Answer

A tax cut would increase disposable income, which could lead to increased spending on imports, thereby increasing the trade deficit. Additionally, a tax cut could stimulate economic growth, which could increase demand for foreign goods and further worsen the trade deficit.

A Large Tax Cut in the United States Should Lead