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3 years ago

Which of these will increase the United States trade deficit?

Social Studies

1 answer:

KatRina [158]3 years ago

6 0

The correct answer is <em>D) American firms purchasing industrial equipment from German companies</em>.

The balance of trade is the difference between a nation's exports and imports in a given period. A nation is considered to have a trade surplus when its exports exceed its imports. On the other hand, it is considered to have a trade deficit when its imports exceed its exports.

The United States currently holds a trade deficit. In this case, the purchase of German equipment represents a contribution to the total imports of the United States. Therefore, there is a growth in the trade deficit of the country.

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