If the United States is a net borrower from, or lender to, the rest of the world, this is best indicated by the U.S.
A) balance-of-payments position.
B) current account balance.
C) merchandise trade balance.
D) net export balance.

Question

Quizplus · Accepted Answer

The net borrowing or lending position of the United States with the rest of the world is best indicated by the current account balance, which includes trade in goods and services, income flows, and unilateral transfers. The balance-of-payments position would include the financial account and capital account, in addition to the current account. The merchandise trade balance and net export balance only reflect the trade in goods component of the current account.

If the United States Is a Net Borrower From, or Lender