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Chapter 23: Q. 16 (page 576)

Both the United States and global economies are booming. Will U.S. imports and/or exports increase?

Short Answer

Expert verified

U.S. imports will increase.

Step by step solution

Step 1. Given

It is given that both the United States and global economies are booming.

Step 2. Explanation

Import sales will rise as a result of a booming economy, which will raise overall demand for goods. If our trade partners' economies are doing well, they will purchase more of our products, resulting in a rise in US exports.

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Most popular questions from this chapter

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If the trade deficit of the United States increases, how is the current account balance affected?

A government official announces a new policy. The country wishes to eliminate its trade deficit, but will strongly encourage financial investment from foreign firms. Explain why such a statement is contradictory.

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