An important explanation for the current account deficit and capital account surplus in the United States is that

Question

Quizplus · Accepted Answer

The current account measures the balance of trade in goods and services, and the United States imports more goods and services than it exports, resulting in a current account deficit. The capital account measures investment flows into and out of the country, and foreigners find the United States an attractive place to invest, resulting in a capital account surplus. Therefore, option B is the correct answer.

An Important Explanation for the Current Account Deficit and Capital