PPSCFPSCNTSPakistan govt jobs
- Subject
- The Balance of Paymentseconomics-mcqs › the-balance-of-payments
- Published
- 27 May 2019
- Last updated
- 28 May 2026
Which statement best explains why the claim that U.S. current account deficits lead to net job losses for Americans is incorrect?
Multiple choice question for The Balance of Payments. Select an option, then review the explanation below.
Explanation
The argument that U.S. current account deficits cause net job losses ignores the fact that such deficits are offset by a corresponding inflow of foreign investment. This capital inflow finances investments that can increase employment, meaning the deficit itself does not directly result in job losses.
More The Balance of Payments MCQs
Practice related questions from the same subject.
- 1.Which of the following statements about the balance of payments is accurate?
- 2.What term describes the difference between a nation's exports and imports of goods?
- 3.What is required to reconcile discrepancies in the balance of payments accounts?
- 4.What does the balance of trade specifically measure?
- 5.Which economic pattern is commonly observed in countries during the initial phases of rapid economic growth?