Statement I.Foreigners own more assets in the United States than Americans abroad.
Statement II.Our high current account deficit should be of no concern to the U.S.government.

Question

Quizplus · Accepted Answer

According to the US Bureau of Economic Analysis, as of the end of 2019, foreigners owned $28.1 trillion of US assets, while Americans owned $11.9 trillion of foreign assets. Therefore, statement I is true. However, statement II is false, as a high current account deficit indicates that a country is importing more goods and services than it is exporting, which can lead to an imbalance in international trade and a decrease in the value of the country's currency. This is a cause for concern for the government and the economy as a whole.