The U.S. trade deficit can disappear without raising legitimate concerns over disruption to the economy if:
A. the U.S. immediately ceases trade with all foreign countries.
B. domestic savings rates increases and foreign investment gradually decreases.
C. all tariffs are doubled and import quotas are reduced by half.
D. foreign investors sell their U.S. dollar investments and stop investing in the U.S. economy.
Answer:B
The U.S. trade deficit can disappear without raising legitimate concerns over disruption to the economy if:
A. the U.S. immediately ceases trade with all foreign countries. B. domestic savings rates increases and foreign investment gradually decreases. C. all tariffs are doubled and import quotas are reduced by half. D. foreign investors sell their U.S. dollar investments and stop investing in the U.S. economy.
Explanation: Type: Multiple Choice