If the United States has a net export surplus,which of the following must be true?
A)The balance on the financial account must equal the balance on the current account.
B)Net foreign investment must be positive as well.
C)Domestic private saving must be greater than net foreign investment.
D)Domestic public saving must be greater than net foreign investment.

Question

Quizplus · Accepted Answer

A net export surplus means that the country is exporting more goods and services than it is importing. This leads to an inflow of foreign currency, which can lead to an increase in net foreign investment. Therefore, net foreign investment must be positive as well. Choices A, C, and D do not necessarily have to be true in this scenario.

If the United States Has a Net Export Surplus,which of the Following