If the United States is a "net borrower" from abroad,
A)the United States must be exporting more than it is importing.
B)net capital flows must be negative.
C)domestic saving is less than domestic investment.
D)net foreign investment must be positive.

Question

Quizplus · Accepted Answer

If the United States is a "net borrower" from abroad, it means that the amount of capital flowing into the country from foreign lenders is greater than the amount of capital flowing out of the country to foreign borrowers. This results in net capital inflows, which means that domestic saving is less than domestic investment. Therefore, option C is the correct answer. Options A, B, and D are incorrect because they do not accurately describe the meaning of the term "net borrower."

If the United States Is a "Net Borrower" from Abroad