When the U.S.has a current account surplus,we know that it is also
A)running a balanced trade account.
B)lending to the rest of the world.
C)borrowing from the rest of the world.
D)suffering from negative investment income.
E) none of the above

Question

Quizplus · Accepted Answer

A current account surplus means that the value of goods, services, and investments exported by the U.S. exceeds the value of those imported, resulting in a net inflow of money into the U.S. economy. This surplus can be used to lend to other countries, meaning that the U.S. is a net creditor to the rest of the world.