The trade deficit and the _____ surplus essentially balance out and offset each other.

Question

Quizplus · Accepted Answer

The trade deficit refers to the difference between a country's imports and exports, while the capital surplus refers to the inflow of foreign investment in a country's assets. When a country has a trade deficit, it typically also has a capital surplus, as foreign investors are using the funds obtained from exporting to invest in that country. Therefore, these two factors balance out and offset each other.

The Trade Deficit and the _____ Surplus Essentially Balance Out