Increasing U.S. trade deficits result in _____
A) federal budget surpluses.
B) increased U.S. savings.
C) reduced purchases of U.S. government bonds by people in other countries.
D) the accumulation of dollars overseas.
E) increased U.S. investment abroad.

Question

Quizplus · Accepted Answer

Increasing U.S. trade deficits result in the accumulation of dollars overseas, as foreign countries receive dollars in exchange for their exports to the U.S. These dollars can then be used to purchase U.S. assets, such as government bonds, or invested in other foreign currencies.

Increasing U.S. Trade Deficits Result in _____