During Recent Times, the United States Has Been Running a Trade

Multiple Choice

During recent times, the United States has been running a trade deficit (our exports of goods and services have been less than our imports of goods and services) . Which of the following is true regarding these trade deficits?

A) They were primarily caused by rapid economic growth in the United States stimulating imports and also the attractiveness of the United States as a place to invest causing a capital inflow.
B) These trade deficits put the United States in debt to foreign economies and thus weaken future economic conditions in the United States.
C) These trade deficits are evidence that other countries practice unfair trade against the United States because under fair trade exports equal imports to another country.
D) None of the above are true regarding the trade deficits of the United States.