In 2007 the United States had a current account deficit.The current account deficit implies that the United States
A)had a surplus on legal consulting and engineering services.
B)produced more output than it consumed.
C)consumed more output than it produced.
D)none of the above

Question

Quizplus · Accepted Answer

A current account deficit occurs when a country imports more goods and services than it exports, meaning that it consumes more output than it produces. Therefore, option C is the correct answer. Option A refers to a surplus in the trade of specific services, while option B is the opposite of a current account deficit and refers to a situation in which a country produces more output than it consumes.

In 2007 the United States Had a Current Account Deficit