In the 2000s,the U.S.economy had both a ________ and a ________.
A)large trade deficit;large capital inflow
B)large trade surplus;large capital inflow
C)large trade deficit;high saving rate
D)large capital inflow;high saving rate
E)large capital inflow;small government budget deficit

Question

Quizplus · Accepted Answer

The U.S. economy had a large trade deficit, meaning it was importing more goods and services than it was exporting, and a large capital inflow, meaning it was receiving a lot of foreign investment. This resulted in a situation where the U.S. was borrowing from other countries to finance its current account deficit.