Question

In the middle of this decade, the United States imported about $800 billion more in goods and services than it exported, thereby resulting in a _________ value of Xn and a decrease in GDP.
A positive
B negative
C neutral
D none of the above

Answer 1

Answer:

B negative

Explanation:

This problem is talking about the balance of trade of the United States during this time period.

If a country exports more than it imports, it has a positive trade surplus, or positive balance of trade.

Otherwise, if the country imports more than it exports, it has a negative trade surplus.

Since US imported more than it exported, the correct answer is:

B negative