A rising U.S. trade deficit means that global investors have reduced their willingness to invest in the U.S. This statement is false.
What is trade deficit?
When an international transaction account has a negative net amount or negative balance, a trade imbalance exists. All economic transactions involving a change in ownership between residents and non-residents are documented in the balance of payments (international transaction accounts). Different categories within an international transaction account might be used to compute a trade deficit or net amount. Among them are goods, services, goods and services, current account balances, and the total of the current and capital account balances.
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