Allison,a U.S.citizen,travels to Europe and spends $2,000 on souvenirs.She is contributing to the _____.

Question

Quizplus · Accepted Answer

Allison's spending on souvenirs in Europe would be considered an import from the U.S. perspective, as she is bringing goods into the country. Therefore, her spending contributes to the U.S. balance of payments deficit, which measures the country's overall shortfall in foreign currency due to imports exceeding exports.