US Trade Deficit

Explain what the US Trade Deficit is.
- The U.S. Trade Deficit is basically a calculation of the difference between the good and services we purchase and sell from foreigners.

Why did it go down in December 2007?
-The US Trade Deficit went down in December 2007 because the import exceeded the export by $58.76 billion.

What does the value of the US dollar have to do with the trade deficit falling?
- Every time America's economy is less than what was spent, the value of the American dollar drops.

Why do you think that a large trade deficit is bad for the economy? In other words: why is it bad to import more goods than you export?
- A large deficit is bad for the economy because we are not making money if the number of imports exceeds the number of exports.