If the United States Has a Current Account Deficit and the Capital

Multiple Choice

If the United States has a current account deficit and the capital account is zero,which of the following must be true?

A) The balance on the financial account must equal the balance on the current account.
B) Net foreign investment must be negative as well.
C) Domestic private saving must be less than net foreign investment.
D) Domestic public saving must be less than net foreign investment.