QUESTION 12

The U.S. current-account deficit increased to $410.6 billion in 2014 from $400.3 billion in 2013. The deficit was 2.4 percent of current-dollar GDP in both 2014 and 2013 (Bureau of Economic Analysis, March 19, 2015). What does the U.S. current account deficit mean?

	a.	U.S. investors invested more abroad than foreigners invested in the United States in 2014.
	b.	The sum of U.S. domestic investment and the government budget deficit exceeded U.S. private sectors saving in 2014.
	c.	The total saving in the United States was more than its total investment.
	d.	U.S. national income was more than its total domestic expenditure (the sum of consumption, government expenditure, and domestic investment) in 2014.