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A US Trade Deficit Will Cause All of the Following Phenomena

Question 104

Multiple Choice

A U.S. trade deficit will cause all of the following phenomena except:


A) U.S. assets will have to be sold to foreigners.
B) future interest and profits from assets sold to foreigners must be paid to them.
C) future consumption must decrease to pay for the current excess of imports over exports.
D) production must eventually increase.

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