Asked by Akwinder Chattha on May 08, 2024
Verified
One of the most important thing we might do to lower our trade deficit is
A) raise the excise tax on gasoline.
B) lower the personal income tax.
C) prevent the Japanese from building automobile factories in the United States.
D) tax our exports.
Trade Deficit
A situation where a country's imports of goods and services exceed its exports.
Excise Tax
A tax imposed on specific goods, services, and activities, such as gasoline, tobacco, and alcohol, often used to discourage their use and generate revenue.
Personal Income Tax
Tax imposed on individuals based on their income, including wages, salaries, and investment income.
- Recognize the factors that influence the trade deficit and potential solutions to reduce it.
Verified Answer
ZL
Zemirah LandsMay 08, 2024
Final Answer :
A
Explanation :
Raising the excise tax on gasoline can reduce the demand for imported oil, which is a significant component of many countries' trade deficits. By decreasing the amount of oil imported, the trade deficit can be lowered.
Learning Objectives
- Recognize the factors that influence the trade deficit and potential solutions to reduce it.