If the United States is viewed by foreigners as a great nation in which to invest, generating a large inflow of foreign investment, this will cause the United States to run a

Question

Quizplus · Accepted Answer

A large inflow of foreign investment typically leads to a current account deficit because the capital inflow strengthens the domestic currency, making exports more expensive and imports cheaper, thus increasing the trade deficit.

If the United States Is Viewed by Foreigners as a Great