If the balance of the current account in the United States is -$900 billion,which of the following is most likely to be true?
A)The balance on the financial account is positive.
B)The trade balance is positive.
C)Net foreign investment is positive.
D)The balance on the capital account is negative.

Question

Quizplus · Accepted Answer

The balance on the financial account is likely to be positive because a deficit in the current account (such as a -$900 billion balance) typically means that the country is importing more than it is exporting, which must be financed by inflows in the financial account, reflecting borrowing or selling domestic assets to foreigners.

If the Balance of the Current Account in the United