Asked by Ariah Scales on Apr 29, 2024
Verified
A trade deficit for the United States is generally financed by
A) lending to the federal government.
B) borrowing from the federal government.
C) buying securities or assets from other nations.
D) selling securities or assets to other nations.
Trade Deficit
A situation in which a country's imports of goods and services exceed its exports, leading to a negative balance of trade.
Federal Government
The national government of a country, which is responsible for governing the nation as a whole and enacting laws applicable across all states or provinces.
Securities or Assets
Financial instruments that hold value and can be traded, such as stocks, bonds, or real estate.
- Examine the repercussions of trade deficits and their financial underpinnings.
Verified Answer
AP
Allison PersaudApr 30, 2024
Final Answer :
D
Explanation :
A trade deficit means that the country imports more goods and services than it exports. To finance this deficit, the United States sells securities or assets to other nations. This inflow of foreign capital allows the U.S. to pay for its imports.
Learning Objectives
- Examine the repercussions of trade deficits and their financial underpinnings.