Samantha,a U.S.citizen,travels to Australia and spends $3,500 on souvenirs and clothing.She is contributing to the _____.

A) U.S.trade surplus
B) growing exchange rate
C) U.S.balance of payments surplus
D) U.S.balance of payments deficit

Question

Makayla Barksdale · Accepted Answer

Final Answer : D, Explanation :  When a U.S. citizen spends money abroad, it counts as an import, which means money is flowing out of the U.S. economy to another country. This contributes to a balance of payments deficit for the U.S., as it increases the amount of money leaving the country compared to what is coming in.

Samantha,a U.S.citizen,travels to Australia and spends $3,500 on souvenirs and clothing.She is contributing to the _____.

A) U.S.trade surplus
B) growing exchange rate
C) U.S.balance of payments surplus
D) U.S.balance of payments deficit

Definitions

Learning Objectives

Learning Objectives

Related questions

Samantha,a U.S.citizen,travels to Australia and spends $3,500 on souvenirs and clothing.She is contributing to the _____.A) U.S.trade surplusB) growing exchange rateC) U.S.balance of payments surplusD) U.S.balance of payments deficit

Definitions

Learning Objectives

Learning Objectives

Related questions

Samantha,a U.S.citizen,travels to Australia and spends $3,500 on souvenirs and clothing.She is contributing to the _____.

A) U.S.trade surplus
B) growing exchange rate
C) U.S.balance of payments surplus
D) U.S.balance of payments deficit