If foreign investment in the United States exceeds U.S. investment abroad, there is a ________; and when U.S. investment abroad exceeds foreign investment in the United States, there is ________.
A) current account surplus; a current account deficit
B) current account surplus; an official accounts surplus
C) capital and financial account surplus; a capital and financial account deficit
D) capital and financial account deficit; a capital and financial account surplus

Question

Quizplus · Accepted Answer

When foreign investment in the U.S. exceeds U.S. investment abroad, it results in a capital and financial account surplus. Conversely, when U.S. investment abroad exceeds foreign investment in the U.S., it leads to a capital and financial account deficit.

If Foreign Investment in the United States Exceeds U