Question

Since the Great Recession, the trade deficit has been

		decreasing
		staying about the same
		increasing
		none of the above

To which of the following countries does the United States exports the largest value of goods

		Canada
		Mexico
		Japan
		China

We can think of an increase in government transfer payments as

		an increase in G
		a decrease in G
		an increase in T
		a decrease in T

When looking only at the import and export of services, the U.S.

		has a trade deficit
		has a trade surplus
		exports virtually no services
		has a balanced trade in services

Answer 1

Trade deficit has been rising since the early 2000 and more rapidly since 2008 primarily because of the increasing imports of oil and other goods. Hence the answer is increasing

US exports most to the Canada and then to Mexico. Select Canada

Since transfer payment is an expenditure, it should be a part of G. Select an increase in G

US has export of 828 billion but import of 525 billion so there is a trade surplus in services. Select has a trade surplus.