Asked by Carrie Steel on Jul 06, 2024
Verified
A current account deficit will reduce U.S. foreign indebtedness.
Current Account Deficit
is a measurement of a country's trade where the value of the goods and services it imports exceeds the value of the products it exports.
Foreign Indebtedness
The total amount of debt a country owes to foreign creditors.
- Familiarize oneself with the effects that trade balances have on the economies of nations and on currency values.
Verified Answer
SY
Shilpa YadavJul 11, 2024
Final Answer :
False
Explanation :
A current account deficit typically means that a country is importing more than it is exporting, which often leads to borrowing from foreign lenders to finance this deficit, thereby increasing U.S. foreign indebtedness.
Learning Objectives
- Familiarize oneself with the effects that trade balances have on the economies of nations and on currency values.