Study reveals U.S. exports of services outpace imports, impacting trade balance.
The study looked at why the U.S. has a trade deficit in goods but a surplus in services. By analyzing how people's income affects their spending on services, the researchers found that Americans tend to spend more on exporting services than importing them. This means that the U.S. makes more money from providing services to other countries than it spends on services from abroad. The study also showed that looking at specific types of services is crucial for understanding this relationship.