The United States’ current account deficit is a result of the nation importing more than it is exporting or consuming more than it is producing (Ott, n.d.). The current account is a subaccount of the balance of payments, which is a method of tracking economic interactions with other countries (Carbaugh, 2011). The other subaccount of the balance of payments is the capital and financial account. A deficit in the current account means that there is a surplus in the capital and financial account, and vice versa. A country is considered a net debtor when the money in the current account is less than that of the capital and financial account. Furthermore, this net debtor label means that foreig...
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Ott, M. (n.d.). International Capital Flows. Library of Economics and Liberty. Retrieved June 9, 2011, from http://www.econlib.org/library/Enc/InternationalCapitalFlows.html
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