Question
Suppose that the U.S. current account balance is negative because of a trade deficit.What is most likely going to happen in the financial and capital
Suppose that the U.S. current account balance is negative because of a trade deficit.What is most likely going to happen in the financial and capital account?
The financial and capital account balance will be negative because of foreigners purchasing U.S. assets.This will lead the balance of payments to balance to to zero.
The financial and capital account balance will be positive because foreigners purchased U.S. assets.
The financial and capital account balance will be positive because of foreigners selling their assets to U.S. citizens.
The financial and capital account balance will be positive because of foreigners selling U.S. assets.This will lead the balance of payments to balance to to zero.
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