Saying that the United States is running a large current account deficit is equivalent to saying that:

Question

Quizplus · Accepted Answer

A large current account deficit implies that a country, like the United States in this scenario, is importing more goods, services, and capital than it is exporting. This deficit must be financed by borrowing from foreign lenders or selling domestic assets to foreigners, which is recorded in the capital account. Therefore, a large current account deficit is typically associated with a corresponding surplus in the capital account, as the inflow of capital finances the deficit.

Saying That the United States Is Running a Large Current