This is TRUE. It is accurate to say that the U.S. trade deficit is linked to capital imports that encourage domestic investment.
A trade imbalance exists when a country imports more than it exports. In reality, imports of consumer goods are what lead to trade imbalances.
Essentially, a declining currency value raises domestic investment and the price of imports into a trade deficit situation. As a consequence, customers buy more items made locally and consume fewer imported ones.
The price of exports is lowered as a result of devaluing the value of its currency, which also boosts its productivity and competitiveness in international markets. Trade imbalances' or trade deficits' effects on business, border safety, and the economy will fluctuate over time.
Learn the difference between trade surplus and trade deficit here: https://brainly.com/question/17717899
#SPJ4
