The U.S. trade deficit has been mainly caused by:
A)production of inferior goods in the U.S.
B)unfair trade restrictions imposed by other countries on imports.
C)a low rate of national saving.
D)cheap labor in other countries.

Question

Quizplus · Accepted Answer

A low rate of saving in the U.S. has encouraged foreign investment in the U.S. to take advantage of abundant opportunities. High net capital inflows must be offset by large trade deficits.

The US Trade Deficit Has Been Mainly Caused By