The U.S. has a trade surplus. Which of the following is correct? A)capital is flowing into the U.S. and S I B)capital is flowing into the U.S. and S I D)capital is flowing out of the U.S. and S

Question

The U.S. has a trade surplus. Which of the following is correct? A)capital is flowing into the U.S. and S > I B)capital is flowing into the U.S. and S < I C)capital is flowing out of the U.S. and S > I D)capital is flowing out of the U.S. and S < I

Quizplus · Accepted Answer

A trade surplus means the U.S. exports more than it imports, leading to capital flowing out of the U.S. and savings (S) being greater than investment (I).

The US Has a Trade Surplus