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1)A trade deficit for the United States is generally financed by: a)Lending to t

ID: 1095111 • Letter: 1

Question

1)A trade deficit for the United States is generally financed by:

a)Lending to the Federal government

b)Borrowing from the Federal government

c)Buying securities or assets from other nations

d)Selling securities or assets to other nations

2)A trade deficit means a net:

a)Inflow of payments for goods and services

b)Outflow of goods and services

c)

Inflow of goods and services

d)Excess of exports over imports

a)Inflow of payments for goods and services

b)Outflow of goods and services

c)

Inflow of goods and services

d)Excess of exports over imports

Explanation / Answer

1. A trade deficit for the United States is generally financed by:

Answer: (d) Selling securities or assets to other nations.

2. A trade deficit means a net:

Answer: (a)Inflow of payments for goods and services