If the United States has a $300 billion net capital inflow, then there must be a:
A)trade surplus of $300 billion.
B)trade deficit of $300 billion.
C)trade surplus of $600 billion.
D)net capital outflow of $300 billion.

Question

Quizplus · Accepted Answer

This follows from the accounting identity NX + KI = 0. Here, KI is net capital inflows of $300 billion and NX, net exports, must be -$300 billion.

If the United States Has a $300 Billion Net Capital