Suppose the United States Spends More on Foreign Goods and Services

Multiple Choice

Suppose the United States spends more on foreign goods and services than foreigners spend on our goods and services and the United States sells no foreign assets. Then the

A) United States must borrow an amount equal to national saving.
B) United States must borrow an amount equal to imports minus exports.
C) rest of the world may or may not finance the U.S. trade deficit.
D) United States must borrow an amount equal to consumption expenditure plus investment.