If the United States is a "net borrower" from abroad
A)the United States must be exporting more than it is importing.
B)net capital flows must be negative.
C)national saving is less than domestic investment.
D)net foreign investment must be positive.

Question

Quizplus · Accepted Answer

When the United States is a net borrower from abroad, it means that national saving is less than domestic investment. This is because the country is borrowing money from outside sources to finance its domestic investment, indicating that it is consuming more than it is saving. Net capital flows may be positive, indicating that foreign investors are investing in the United States, but net foreign investment is not necessarily positive as it depends on the specific situation. The United States can have a trade deficit and still be a net borrower from abroad if it is borrowing more money for investment than it is earning from exporting.

If the United States Is a "Net Borrower" from Abroad