An increase in U.S.sales of movies to other countries raises U.S.
A)exports and so raises the U.S.trade balance.
B)exports and so reduces the U.S.trade balance.
C)imports and so raises the U.S.trade balance.
D)imports and so reduces the U.S.trade balance.

Question

Quizplus · Accepted Answer

An increase in U.S. sales of movies to other countries represents an increase in exports, and so it raises the U.S. trade balance. This is because the sale of goods or services abroad generates revenue for the U.S., which contributes to increasing the trade surplus.

An Increase in U