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"Wine Experts Are Discovering That California Wines of Several Varieties

Question 97

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"Wine experts are discovering that California wines of several varieties and vintages are comparable to many of the best French wines. The result is an increased demand, here and abroad, for California wines." With regard to the U.S. balance on current account, this trend will


A) increase the U.S. deficit because of the rise in the price of California wine.
B) decrease the U.S. deficit because of increased shipments of California wines abroad.
C) decrease the demand for U.S. dollars.
D) increase the U.S. demand for euros.

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