In 2004 the U.S.had a large trade
A)surplus and a large net capital inflow.
B)surplus and a large net capital outflow.
C)deficit and a large net capital inflow.
D)deficit and a large net capital outflow.

Question

Quizplus · Accepted Answer

A trade deficit means that the U.S. is importing more goods and services than it is exporting, which results in a net outflow of capital as the U.S. pays for these imports. Therefore, the correct answer is C, a deficit and a large net capital inflow, as there may still be foreign investment in the U.S. economy despite the trade deficit.

In 2004 the U.S.had a Large Trade