Other things remaining constant, higher trade deficits in the U.S. will lead to:
a. U.S citizens buying greater foreign securities.
b. an increase in domestic savings in the U.S.
c. a decrease in the demand for U.S. dollars.
d. an increase in funds from abroad.
e. an increase in the standard of living of the U.S residents.
Question 2
The inflation experienced in the United States during the late 1960s as a result of the spending on the Vietnam War is an example of:
a. hyperinflation.
b. demand-pull inflation.
c. disinflation.
d. cost-push inflation.
e. cyclical inflation.
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