If the United States imports more goods from Japan than it exports to Japan, how

ID: 1205189 • Letter: I

Question

If the United States imports more goods from Japan than it exports to Japan, how will the difference be financed?

The United States will buy more Japanese assets.

The United States will sell assets, generating a liability that obligates Americans to pay for those imports in the future.

The United States will sell assets to the Japanese, which would reduce its liabilities.

U.S. consumers will borrow money from domestic banks.

If the United States imports more goods from Japan than it exports to Japan, how will the difference be financed?

The United States will buy more Japanese assets.

The United States will sell assets, generating a liability that obligates Americans to pay for those imports in the future.

The United States will sell assets to the Japanese, which would reduce its liabilities.

U.S. consumers will borrow money from domestic banks.

# If the United States imports more goods from Japan than it exports to Japan, how will the difference be financed?

* The United States will sell assets, generating a liability that obligates Americans to pay for those imports in the future.

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