In the long run, imports will most likely be paid for with
A) exports.
B) the sale of real and financial assets.
C) the extension of credit.
D) higher domestic unemployment.

Question

Quizplus · Accepted Answer

Imports are generally paid for with exports as countries engage in international trade. When a country imports more than it exports, it creates a trade deficit, which can lead to a current account deficit that must be financed by borrowing from other countries or selling assets. However, in the long run, countries will strive to balance their trade and pay for their imports with their exports. The sale of real and financial assets or the extension of credit cannot be a sustainable solution for paying for imports in the long run. Higher domestic unemployment is also not a viable solution as it can have negative consequences for the economy.

In the Long Run, Imports Will Most Likely Be Paid