When there is a deficit in the U.S. balance of payments on the current account, we pay for the difference by:

Question

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When there is a deficit in the U.S. balance of payments on the current account, it means that the U.S. is importing more goods, services, and capital than it is exporting. To finance this deficit, the U.S. needs to attract foreign capital or sell domestic assets to foreign investors, hence "selling assets to other countries" is a way to pay for the difference.

When There Is a Deficit in the U