All things being equal, which of the following should have the immediate effect of reducing the trade deficit?

Question

Quizplus · Accepted Answer

A worldwide recession could reduce demand for imports but also exports, pegging the dollar at a high level makes imports cheaper and exports more expensive, worsening the trade deficit, and lowering U.S. tariffs makes imports cheaper without directly affecting exports, potentially increasing the trade deficit. None of the options directly lead to an immediate reduction in the trade deficit.

All Things Being Equal, Which of the Following Should Have