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Many Economists Believe That Current Account Deficits Are Fundamentally an Issue

Question 29

Multiple Choice

Many economists believe that current account deficits are fundamentally an issue based in:


A) a shortfall of domestic saving, which leads to an inflow of foreign saving.
B) tax revenue, which affects disposable income.
C) price levels, which lead to purchase decisions.
D) a surplus of investment funds, which leads to excess saving.

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