If the United States has a capital account surplus,the current account:

Question

Quizplus · Accepted Answer

When a country has a capital account surplus, it means that there is more foreign investment flowing into the country than there is flowing out. This leads to an increase in the country's foreign assets. However, this also means that the current account, which measures a country's trade balance (exports minus imports), will experience a deficit since there is more money going out of the country for imports than there is coming in from exports. Therefore, choice D is correct.

If the United States Has a Capital Account Surplus,the Current