In recent years, to balance its trade deficit, the United States has:
Correct answer: A. "exported" currency to other countries
- A. "exported" currency to other countries
- B. greatly increased tariffs on imports from Asia
- C. increased export of goods and services by offering subsidies to those industries
- D. invested heavily in the euro and the yen
Explanation
The United States has often financed its trade deficit by sending dollars abroad in payment for imports, with those dollars then invested in US assets or held as reserves. This is commonly described as exporting currency rather than directly correcting the deficit through tariffs.
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Practise International Political Economy
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