When the U.S. economy runs a trade ________, it is implicitly asking the rest of the world to ________.

Question

Quizplus · Accepted Answer

When the U.S. economy runs a trade deficit, it is importing more goods and services than it is exporting, meaning it is spending more money than it is earning. To finance this overspending, it needs to borrow money from other countries or investors. Therefore, it is implicitly asking the rest of the world to finance some of its investment.