Orders for durable US manufactured goods decreased by 7.3%. What could account for this shift in trade, and in what way would it have influenced the US balance of payments?
- Areason for change: an expansion in domestic production; effect on balance of payments: increased outflow in the current account
- Breason for change: an expansion in foreign markets; effect on balance of payments: reduced inflow in the financial account
- Creason for change: a recession in domestic production; effect on balance of payments: increased outflow in the financial account
- Dreason for change: a recession in foreign markets; effect on balance of payments: reduced inflow in the current account