a trade deficit implies that\na. the number of items exported is larger than the number of items…
a trade deficit implies that\na. the number of items exported is larger than the number of items imported.\nb. the dollar value of imports exceeds the dollar value of exports.\nc. the dollar value of exports exceeds the dollar value of imports.\nd. the number of items imported is larger than the number of items exported.\ngenerally a larger us trade deficit is accompanied by a\na. a larger us federal government budget deficit.\nb. a smaller us national debt.\nc. decreased borrowing by the us government.\nd. a smaller us federal government budget deficit.
Answer
Brief Explanations:
- A trade deficit occurs when the value of a country's imports exceeds the value of its exports in terms of dollars. It's about the monetary value, not the quantity of items.
- The twin - deficit hypothesis suggests that there is a relationship between a country's trade deficit and its government budget deficit. In the US, generally a larger trade deficit is accompanied by a larger US federal government budget deficit. This is because when there is a trade deficit, domestic savings are insufficient to finance domestic investment, and the government may also face budget short - falls, leading to increased borrowing and larger budget deficits.
Answer:
- B. the dollar value of imports exceeds the dollar value of exports.
- A. a larger US federal government budget deficit.