Statement I.Foreigners own more assets in the United States than Americans abroad.
Statement II.Our high current account deficit should be of no concern to the U.S.government.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Question

Tammy McCoy · Accepted Answer

Final Answer : A, Explanation :  According to the US Bureau of Economic Analysis, as of the end of 2019, foreigners owned $28.1 trillion of US assets, while Americans owned $11.9 trillion of foreign assets. Therefore, statement I is true. However, statement II is false, as a high current account deficit indicates that a country is importing more goods and services than it is exporting, which can lead to an imbalance in international trade and a decrease in the value of the country's currency. This is a cause for concern for the government and the economy as a whole.

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