Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following is true of U.S. net exports prior to the 1960s?
A)Since most of the oil needs of the U.S. were met through imports, imports exceeded exports prior to the 1960s in the U.S.
B)Prior to the 1960s, exports from the U.S. more or less equalled imports into the U.S.
C)The U.S. was running a trade surplus prior to the 1960s.
D)Prior to the 1960s, the U.S. ran twin deficits- both a current account deficit as well as a budget deficit.
E)Since the U.S. dollar was overvalued prior to the 1960s, the U.S. neither exported nor imported any goods and services.

Question

Quizplus · Accepted Answer

Prior to the 1960s, the United States was running a trade surplus, meaning that its exports exceeded its imports. This was a period of economic growth and expansion for the U.S., where it emerged as a major exporter of goods worldwide.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth