The large current account deficits in Australia mean that:
A)foreign investors accumulate more Australian assets than Australian investors accumulate foreign assets.
B)private savings have been at historically high levels.
C)foreign investors lack confidence in the strength of the Australian economy and the buying power of Australian consumers.
D)there has been little or no foreign investment in Australia.

Question

Quizplus · Accepted Answer

A current account deficit means that a country is importing more goods and services than it is exporting, resulting in a net outflow of money. This means that foreign investors are accumulating more Australian assets (such as property, shares, and businesses) than Australian investors are accumulating foreign assets.

The Large Current Account Deficits in Australia Mean That