Which of the following would do the most to reduce a trade deficit?
A) increasing domestic saving
B) increasing political stability and respect for property rights
C) negotiating with other countries to get them to reduce their trade restrictions
D) imposing higher tariffs on imported goods

Question

Quizplus · Accepted Answer

Increasing domestic saving can lead to a reduction in a trade deficit because it can decrease the need for foreign capital, thereby reducing imports and increasing the capacity for domestic investment and production.

Which of the Following Would Do the Most to Reduce