In 2016 the United States posted a current account deficit. The bulk of the negative value came from:
A) a net transfer deficit.
B) an income balance deficit.
C) a goods trade deficit.
D) an income trade deficit.

Question

Quizplus · Accepted Answer

The goods trade deficit refers to the difference between the value of goods that the US exports and the value of goods that it imports. In 2016, the US imports of goods exceeded its exports, leading to a goods trade deficit and contributing significantly to the current account deficit. The other options (A, B, and D) also contribute to the current account, but not to the same extent as the goods trade deficit.

In 2016 the United States Posted a Current Account Deficit