Following World War II,the United States gradually moved from a balance-of-trade surplus into a deficit.This shift was a result of the
A) devaluation of the dollar.
B) failure of many European countries to honor the Bretton Woods agreement.
C) increasing capacity of European countries to compete with the United States in world markets.
D) U.S. reluctance to provide economic assistance to developing countries.
E) European countries' investing heavily in the United States.

Question

Quizplus · Accepted Answer

The shift to a trade deficit was largely due to the increasing capacity of European countries to compete with the United States in world markets, as they rebuilt their economies post-World War II with the help of the Marshall Plan and other initiatives.

Following World War II,the United States Gradually Moved from a Balance-Of-Trade