Persistent current account deficits in the United States
A)can be seen as a vote of confidence in the strength of the U.S.economy.
B)cause persistent declines in investment in the United States.
C)cause U.S.investors to accumulate more foreign assets than foreign investors accumulate U.S.assets.
D)will eventually cause the value of the dollar to rise.

Question

Quizplus · Accepted Answer

Persistent current account deficits in the United States can be interpreted as a vote of confidence in the strength of the U.S. economy, as they often reflect the attractiveness of the U.S. as a destination for investment, leading to more capital inflows.

Persistent Current Account Deficits in the United States