A U.S. balance of payments deficit would be narrowed by which of the following?

A U.S. balance of payments deficit would be narrowed by which of the following?



A. Increased levels of U.S. imports

B. Decreased sales of U.S. securities to foreign holders

C. Increased levels of foreign tourists visiting the United States

D. Increased dividends paid to foreign holders of U.S. securities



Answer: C. Increased levels of foreign tourists visiting the United States (If the balance of payments is running a deficit, then more U.S. Dollars are being spent abroad for foreign goods and services than are being spent in the United States by foreigners for domestic goods and services.


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