Question

How did the United States try to address the trade imbalance with Japan?

a. Abandon the gold standard.

b. Ask the World Bank for help.

c. Devalue the dollar.

d. Threaten Japan with a trade embargo.

Answer 1

c. Devalue the dollar.

Step-by-step explanation:

Devaluing the dollar means deliberately lowering the value of the U.S. currency relative to other currencies, including the Japanese yen, in order to make U.S. exports more competitive and imports more expensive. This approach was intended to make American products relatively cheaper in foreign markets and thus encourage increased exports and reduce the trade deficit with Japan. It is important to note that other measures and negotiations were also employed to address the trade imbalance, but devaluing the dollar was one of the strategies utilized.