Suppose the dollar value of imports to the U.S. exceed the dollar value of exports from the US. This implies that
A.
U.S. government spending must increase further.
B.
U.S. citizens and firms have a surplus of foreign currency.
C.
foreigners have a shortage of dollars.
D.
foreigners are holding an excess supply of dollars.

Question

Suppose the dollar value of imports to the U.S. exceed the dollar value of exports from the US. This implies that
A.
U.S. government spending must increase further.
B.
U.S. citizens and firms have a surplus of foreign currency.
C.
foreigners have a shortage of dollars.
D.
foreigners are holding an excess supply of dollars.

texaschic101 · Answer

hmmm....that means the U.S. is getting more in then they are sending out....buying more then selling...so foreigners are selling more then buying...so U.S. has a shortage of foreign currency....and the foreigners have excess U.S. currency...so I would go with D.

anonymous · Answer

Thank you:) can you please help with another one?