If more foreign tourists visited the United States,this would
A)lower our merchandise trade imbalance.
B)lower our overall trade imbalance.
C)raise our merchandise trade imbalance.
D)raise our overall trade imbalance.

Question

Quizplus · Accepted Answer

When more foreign tourists visit the United States, they spend money on various services such as hotels, entertainment, and transportation. This increases the United States' exports of services, which is part of the overall trade balance, potentially lowering the overall trade imbalance. The merchandise trade balance, which involves goods rather than services, is not directly affected by tourism.

If More Foreign Tourists Visited the United States,this Would