A current account deficit suggests that a country is importing more than it is exporting and building up foreign debt.

Question

Quizplus · Accepted Answer

A current account deficit occurs when a country's imports exceed its exports, resulting in a net outflow of currency. This means the country is buying more goods and services from other countries than it is selling, and it can lead to an increase in foreign debt as the country may have to borrow to finance the deficit.

A Current Account Deficit Suggests That a Country Is Importing