Which of the following was a primary cause of the U.S.balance of payments deficits during the late 1960s?:
A)Capital outflows
B)Domestic inflation
C)Increased foreign competition
D)All of the above

Question

Quizplus · Accepted Answer

All three factors contributed to the U.S. balance of payments deficits during the late 1960s. Capital outflows occurred as the U.S. invested heavily overseas, while domestic inflation eroded the value of the dollar, making U.S. goods less competitive in the global market. At the same time, foreign competition increased, further exacerbating the trade deficit.

Which of the Following Was a Primary Cause of the U.S.balance