Question

Net exports might be a negative amount if Americans
a. decrease their holdings of foreign currencies, borrow from foreigners, or do a little of both.
b. increase their holdings of foreign currencies, borrow from foreigners, or do a little of both.
c. decrease their holdings of foreign currencies, lend to foreigners, or do a little of both.
d. increase their holdings of foreign currencies, lend to foreigners, or do a little of both.

Answer 1

Answer:

c. decrease their holdings of foreign currencies, lend to foreigners, or do a little of both.

Explanation:

• The net exports of the American may account for the negative share of the American holdings if they continue to borrow for the foreign currencies and lend to foreigners and may disturb the balance of payments.