The United States is able to maintain a large trade deficit because:

Question

Quizplus · Accepted Answer

The United States is able to maintain a large trade deficit because it is balanced by a large capital surplus. This means that the country is borrowing from other countries to finance its imports, but it is also attracting large inflows of foreign investments. In other words, the U.S. is able to attract foreign capital because it is seen as a safe and profitable place to invest, despite having a trade deficit.

The United States Is Able to Maintain a Large Trade