Question

One of the consequences of the U.S. trade deficit is that Multiple Choice domestic inflation has resulted. the accumulation of American dollars in foreign hands has enabled foreign firms to build factories in America. the distribution of income in the United States has become less unequal. the system of flexible exchange rates has been abandoned in favor of a new gold standard

Answer 1

Answer: the accumulation of American dollars in foreign hands has enabled foreign firms to build factories in America.

Explanation:

Trade deficit is a situation whereby the expenses incurred is more than the revenue gotten.

One of the consequences of the U.S. trade deficit is that the accumulation of American dollars in foreign hands has enabled foreign firms to build factories in America.