When foreign assets in the United States increase,

Question

Quizplus · Accepted Answer

When foreign assets in the United States increase, it means that foreign residents are increasing their ownership of US assets. This results in an increase in the debt of the United States to the rest of the world, as the country is owing more to foreign investors. Option A, C, and D are incorrect because they do not reflect the impact of foreign asset increase on the US debt to the rest of the world.

When Foreign Assets in the United States Increase