Question

a trade deficit implies that part 2 a. the dollar value of exports exceeds the dollar value of imports. b. the dollar value of imports exceeds the dollar value of exports. c. the number of items exported is larger than the number of items imported. d. the number of items imported is larger than the number of items exported. part 3 generally a larger us trade deficit is accompanied by a part 4 a. a smaller us national debt. b. decreased borrowing by the us government. c. a smaller us federal government budget deficit. d. a larger us federal government budget deficit.

Answer 1

A trade deficit occurs when imports exceed exports, and it often correlates with a larger U.S. federal government budget deficit, which can signal economic growth and higher domestic spending. Therefore correct option is B

Step-by-step explanation:

A trade deficit implies that the dollar value of imports exceeds the dollar value of exports. The answer to part 2 of your question is option b, indicating that a country is importing more than it is exporting in dollar terms.

Regarding part 3, generally, a larger U.S. trade deficit is accompanied by a larger U.S. federal government budget deficit. This is because more imports can correlate with increased domestic spending and, potentially, with the government borrowing to sustain such spending. Hence, the answer to part 4 is option d.

It is important to understand that a trade deficit might occur during times of economic growth, where domestic demand leads to greater importation. However, consistent trade deficits should be monitored as they imply reliance on foreign capital for domestic investment and spending.