Why might a U.S. trade deficit be preferable to a U.S. trade surplus?
I. Running a trade deficit allows a country to consume more than it produces.
II. Americans acquire more foreign assets under a trade deficit than they do under a trade surplus.
III. Under a trade deficit, the inflow of financial capital may finance new investment that leads to stronger long-run economic growth in the United States.
A. I, II, III only
B. I and III only
C. II and III only
D. I and II only