单选题
The United States economy made progress in reducing
unemployment and moderating inflation. On the international side, this year was
much calmer than last. Nevertheless, continuing imbalances in the pattern of
world trade contributed to intermittent strains in the foreign exchange markets.
These strains intensified to crisis proportions, precipitating a further
devaluation of the dollar. The domestic economy expanded in a
remarkably vigorous and steady fashion. The resurgence in consumer confidence
was reflected in the higher proportion of incomes spent for goods and services
and the marked increase in consumer willingness to take on installment debt. A
parallel strengthening in business psychology was manifested in stepped-up rate
of plant and equipment spending and a gradual pickup in outlays for inventory.
Confidence in the economy was also reflected in the strength of the stock market
and in the stability of the bond market. For the year as a whole, consumer and
business sentiment benefited from rising public expectations that a resolution
of the conflict in Vietnam was in prospect and that East-West tensions were
easing. The underpinnings of the business expansion were to be
found in part in the stimulative monetary and fiscal policies that had been
pursued. Moreover, the restoration of sounder liquidity positions and tighter
management control of production efficiency had also helped lay the groundwork
for a strong expansion. In addition, the economic policy moves made by the
President had served to renew optimism on the business outlook while boosting
hopes that inflation would be brought under more effective control.
Finally, of course, the economy was able to grow as vigorously as it did
because sufficient flexibility existed in terms of idle men and
machines. The United States balance of payments deficit
declined sharply. Nevertheless, by any other test, the deficit remained very
large, and there was actually a substantial deterioration in our trade account
to a sizable deficit, almost two thirds of which was with Japan. While the
overall trade performance proved disappointing, there are still good reasons for
expecting the delayed impact of devaluation to produce in time a significant
strengthening in our trade picture. Given the size of the Japanese component of
our trade measures undertaken by Japan. Also important will be our own efforts
in the United States to fashion internal policies consistent with an improvement
in our external balance.