At the turn of the century, the U.S. economy supported
A) imports considerably greater than exports, financed by capital inflows in excess of 3 percent of GDP per year.
B) imports slightly in excess of exports, financed by capital inflows just under 1 percent of GDP per year.
C) imports almost exactly matching exports so that capital inflows were almost negligible year in and year out.
D) imports slightly less than exports, financed by capital inflows just under 1 percent of GDP per year.
E) imports considerably less than exports, financed by capital inflows in excess of 2 percent of GDP per year.

Question

Quizplus · Accepted Answer

At the turn of the century, the U.S. economy was characterized by imports considerably greater than exports, with the trade deficit financed by capital inflows exceeding 3 percent of GDP per year. This reflects the U.S.'s position as a net consumer in the global market, relying on foreign investment to balance the trade deficit.

At the Turn of the Century, the U