In the United States, much of the deficit balance in the current account has been financed by:

Question

Quizplus · Accepted Answer

Foreign investment in the United States has been the primary source of financing the deficit balance in the current account. Foreign investors, particularly those from countries with trade surpluses, have been eager to invest in the U.S. market, as it provides a relatively stable and profitable investment opportunity. Selling U.S. Treasury securities and savings bonds are tools used by the government to finance the federal deficit, but they are not the primary source of financing the current account deficit. Increasing the size of the federal deficit would exacerbate the deficit balance in the current account, rather than mitigate it.

In the United States, Much of the Deficit Balance in the Current