Asked by
Josefina Sanders
on Oct 11, 2024Verified
Most of the dollars that foreigners have obtained because of our huge current account deficit
A) circulates in foreign countries.
B) are used as reserves.
C) are invested in the United States.
D) are used to pay off old debts to the United States.
Current Account Deficit
A situation where a country's spending on foreign trade and investment exceeds its income from the export of goods and services.
Foreigners
Individuals from a country other than the one in which they are currently present, often referring to non-citizens or non-natives.
Dollars
The official currency of the United States, also used in other countries as an official or de facto currency.
- Determine the major factors affecting balances in capital and current accounts.
Verified Answer
BM
Learning Objectives
- Determine the major factors affecting balances in capital and current accounts.