If Canada has a capital account deficit, it means that
A) the quantity supplied of Canada's financial assets exceed the quantity demanded.
B) foreigners purchase more of Canada's assets than Canadian residents purchase foreign assets.
C) Canada's imports of capital goods exceed its exports of capital goods.
D) Canadian residents purchase more foreign assets than foreigners purchase Canada's assets.

Question

Quizplus · Accepted Answer

A capital account deficit indicates that Canadian residents are purchasing more foreign assets than foreigners are purchasing Canadian assets.

If Canada Has a Capital Account Deficit, It Means That