Module 7: The Global Economy

Question 1 (1 point)

Other nations could make the United States trade deficit larger if they:

A. Decreased taxes on their imports
B. Purchased more US exports
C. Purchased fewer US exports
D. Decreased the quantity of their exports to the United States



Answer :

Final answer:

The size of the US trade deficit can be influenced by other nations purchasing fewer or more US exports.


Explanation:

If other nations purchase fewer US exports, the United States trade deficit could become larger. This is because a decrease in US exports means the US sells less goods and services to other countries, resulting in a higher trade deficit.

On the contrary, if other nations purchase more US exports, the trade deficit would likely decrease as the US sells more goods and services internationally, balancing the trade equation.

Hence, options c. purchase fewer US exports and b. purchase more US exports directly impact the size of the United States trade deficit.


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