The worst remedy for curing the U.S.trade deficit is to
A)increase U.S.personal saving.
B)reduce the budget deficit.
C)encourage all nations to lower trade barriers.
D)limit imports by imposing tariffs, quotas, and other trade restrictions.

Question

Quizplus · Accepted Answer

Limiting imports by imposing tariffs, quotas, and other trade restrictions can lead to retaliation from other countries, reduce international trade, and ultimately harm the domestic economy more than it helps. It does not address the underlying issues of the trade deficit, such as the imbalance between savings and investment.

The Worst Remedy for Curing the U