試題詳解

15 Which of the following is the reason why do economies often see stronger economic growth accompanied by larger trade deficits?
(A) Higher output leads to greater consumption and investment, including that of imported goods. Imports therefore go up and net exports go down.
(B) Countries generally get stronger growth through expansionary monetary policy, and expansionary monetary policy therefore increases trade deficits.
(C) Lower tariffs help economic growth and also result in substantial reductions in the trade deficit.
(D) The labor demand curve shifts to the left due to wages going down.