Asked by Gisselle Leyva on Jun 19, 2024
Verified
One thing we can do to reduce trade imbalance in the United States would be to
A) push down the value of the dollar relative to other currencies.
B) raise the prices of U.S.exports.
C) raise consumption in the United States.
D) lower savings in the United States.
Trade Imbalance
A situation where the value of a country's imports exceeds the value of its exports or vice versa, affecting the country's balance of payments.
The Dollar
The official currency of the United States, often used as a benchmark in the global economy.
- Determine the underlying reasons for trade deficits and assess their effects on the economy.
Verified Answer
KW
Kaylan WilsonJun 22, 2024
Final Answer :
A
Explanation :
If the value of the dollar is lowered relative to other currencies, it becomes cheaper for foreigners to purchase American goods and services. This would increase demand for American products, ultimately reducing the trade imbalance.
Learning Objectives
- Determine the underlying reasons for trade deficits and assess their effects on the economy.