When the flow of income into the United States exceeds the flow of income out of the United States, it creates a:

Question

Quizplus · Accepted Answer

When the flow of income into the United States exceeds the flow of income out of the United States, it creates a current account surplus. This means that the United States is exporting more goods and services than it is importing, which leads to an increase in the country's net foreign assets. A current account surplus also indicates that the country is a net lender to the rest of the world.

When the Flow of Income into the United States Exceeds