Asked by Matias Morales on Jul 27, 2024

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What are the effects on U.S. imports and exports when the U.S. experiences economic growth stronger than its major trading partners?

A) U.S. imports will increase more than U.S. exports.
B) U.S. exports will increase more than U.S. imports.
C) U.S. imports will decrease, but U.S. exports will increase.
D) There will be no effect on U.S. imports and exports.

Economic Growth

A growth in the economy's output of goods and services over a certain time frame, usually indicated by an upsurge in the real Gross Domestic Product.

U.S. Imports

Goods and services bought by residents of the United States from other countries, contributing to the country's total expenditures.

Trading Partners

Countries, organizations, or individuals that engage in trade with each other, exchanging goods, services, or financial instruments.

  • Examine the influence of currency valuation mechanisms on global commerce and financial dealings.
  • Analyze the relationship between exchange rates, trade balance, and economic growth.
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Zybrea KnightAug 02, 2024
Final Answer :
A
Explanation :
When the U.S. economy grows faster than its major trading partners, American consumers and businesses have more income and profits, leading to increased demand for both domestic and foreign goods. This typically results in increased imports. However, if the economies of the trading partners are not growing as fast, their demand for U.S. goods (exports) may not increase as much.