If Canada acquired net foreign assets of $50 billion in one year,this would be the equivalent of
A)net imports of $50 billion.
B)net foreign borrowing of $50 billion.
C)a capital account deficit of $50 billion.
D)a current account deficit of $50 billion.

Question

Quizplus · Accepted Answer

When a country acquires net foreign assets, it implies that it has a capital account deficit, as it is investing more abroad than it is receiving from foreign investments.

If Canada Acquired Net Foreign Assets of $50 Billion in One