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  3. Study Set
    Macroeconomics Study Set 40
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    Exam 7: Finance, Saving, and Investment
  5. Question
    If Foreigners Spend More on U
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If Foreigners Spend More on U

Question 2

Question 2

Multiple Choice

If foreigners spend more on U.S.- made goods and services than we spend on theirs,


A) we must borrow from foreigners because of low imports.
B) funds flow in from abroad to help finance U.S. investment.
C) all U.S. national saving remains in the United States
D) foreigners must borrow from the United States or sell U.S. assets to make up the difference.

Correct Answer:

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