Question

If the United States had a financial account deficit of​ $50 billion, we could say the United States had:

A. A surplus in the current account.
B. A trade surplus.
C. A surplus in the capital account.
D. A budget surplus.

Answer 1

If the United States had a financial account deficit of​ $50 billion, it would mean that the United States has a trade deficit and a deficit in its current account balance.

Step-by-step explanation:

A current account deficit means that a country is a net borrower from abroad. Conversely, a positive current account balance means a country is a net lender to the rest of the world. In this case, if the United States has a financial account deficit of $50 billion, it would mean that the United States has a trade deficit and a deficit in its current account balance. This indicates an overall net inflow of foreign investment capital from abroad.