If consumers in Europe and Asia develop strong preferences for U.S. goods, the U.S. current account will
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If consumers in Europe and Asia develop strong preferences for U.S. goods, the U.S. current account will
a. not be affected because purchases of U.S. goods by foreigners are recorded in the financial account.
b. not be affected because purchases of U.S. goods based on mere preferences are recorded under statistical discrepancy.
c. move toward surplus because purchases of U.S. goods are recorded as credits on our current account.
d. move toward deficit because purchases of U.S. goods by foreigners are counted as debits in our current account.
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