If foreigners spend more on U.S.-made goods and services than we spend on theirs
A) foreigners must borrow from the United States or sell U.S. assets to make up the difference.
B) all U.S. national saving remains in the United States.
C) we must borrow from foreigners because of low imports.
D) funds flow in from abroad to help finance U.S. investment.

Question

Quizplus · Accepted Answer

When foreigners spend more on U.S. goods and services than the U.S. spends on theirs, it results in a trade surplus for the U.S. Foreigners must finance this by borrowing from the U.S. or selling U.S. assets.

If Foreigners Spend More on U