If the United States is running a trade deficit this year, it also must ________ now, and in the long run, ________.

Question

Quizplus · Accepted Answer

If the United States is running a trade deficit, it means that it is importing more goods and services from other countries than it is exporting. This implies that the US is buying more from China than it is selling to China. Therefore, the US must be borrowing money from China to pay for the excess imports, which leads to a trade deficit. In the long run, to balance its trade with China, the US would need to reduce its imports from China or increase its exports to China, achieving a trade surplus.

If the United States Is Running a Trade Deficit This