Which of the following factors has helped maintain the large U.S. trade deficits over the years?
A)a decline in investment
B)capital and financial account surpluses
C)a decrease in economic growth
D)an increase in U.S. net exports

Question

Quizplus · Accepted Answer

Capital and financial account surpluses have helped the United States to finance its trade deficits. When the U.S. imports more goods and services than it exports, it runs a trade deficit. This deficit is financed by borrowing from abroad or by selling U.S. assets to foreigners, which are recorded as capital and financial account surpluses. These surpluses indicate that foreign capital is flowing into the United States, allowing it to sustain its trade deficits.

Which of the Following Factors Has Helped Maintain the Large