If the United States is running persistent trade deficits now, it:

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Quizplus · Accepted Answer

Persistent trade deficits imply that a country is importing more than it is exporting, which means it is spending more on foreign goods and services than it is earning from its exports. Over time, this situation is typically financed by borrowing from abroad or running down reserves, leading to an increase in foreign debt or a decrease in assets. Eventually, to stabilize its financial position, the country would need to run trade surpluses to earn more from its exports than it spends on imports, allowing it to repay the borrowed funds or rebuild its reserves.

If the United States Is Running Persistent Trade Deficits Now