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Question
Are federal budget deficits related to trade deficits?
A) Yes. If U.S. consumers buy too many imported goods, they do not have funds to save, and a budget deficit results.
B) No. The budget deficit is entirely a domestic matter, while the trade deficit only affects U.S. citizens who travel abroad.
C) Yes. Higher deficit spending goes up results in more government borrowing, and foreign residents who lend funds to the U.S. government have fewer resources to spend U.S. export goods.
D) Yes, but only if the quality of U.S. goods and services is deteriorating
Answer
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Related questions
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Q:
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Q:
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Q:
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Q:
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