The U.S. experienced large current account deficits in the 1980s and much larger deficits more recently (since the mid-1990s). These deficits indicate that the U.S. did not
A) consume more than it produced.
B) sell financial assets.
C) borrow large amounts of money from foreign residents.
D) run a surplus in the financial account.
E) None of these - the U.S. did all of these.

Question

Quizplus · Accepted Answer

The U.S. current account deficits indicate that the U.S. consumed more than it produced, sold financial assets, borrowed large amounts of money from foreign residents, and ran a surplus in the financial account. Therefore, none of the options A through D are correct because the U.S. did all of these, making E the correct choice.

The US Experienced Large Current Account Deficits in the 1980s and and Much