Mr Adam|the impact of the deficit on the balance of payments with the economy of the United States

Mr. Adam has heard of the large balance of payments deficit of the United States economy. He argues: “Surely this means that there is a larger supply of dollars for imports than demand for dollars for US exports, so the value of the dollar is bound to fall.” Mr. Happy adds: “No, the dollar will not necessarily devalue” to which Mrs. Supreme says: “Even if it did, the balance of payments would not necessarily improve, it could even get worse”]

Based on the concern above, evaluate critically the impact of the deficit on the balance of payments with the economy of the United States.

Required to write a report that critically evaluates each concern individually.