Final answer:
It is false that American outward FDI totaling more than $2 trillion from 2000 to 2009 caused U.S. exports to decline. Outward FDI can lead to increased U.S. exports and the data suggests substantial foreign investment inflows into the U.S., which could support the economy.
Step-by-step explanation:
The statement that record levels of American outward foreign direct investment (FDI) from 2000 to 2009, totaling more than $2 trillion, caused U.S. exports to decline during this time period is False. There is no direct correlation provided that links outward FDI with a decline in U.S. exports. In fact, outward FDI can lead to an increase in U.S. exports as multinational companies may still source components or services from their home country.
Additionally, the data from the U.S. Bureau of Economic Analysis indicates that there was a substantial inflow of foreign financial investment into the U.S. economy during the early 2000s, implying that foreign investors were investing more in the U.S. economy than U.S. investors abroad. This inflow of foreign capital would theoretically support the U.S. economy and could contribute positively to exports.
It is also essential to recognize that the dynamics of global economy, financial investment, and international trade are complex, and a multitude of factors, including but not limited to foreign direct investment, affect export levels.