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How Can Strong Economic Growth Cause a Current Account Deficit

Question 108

Multiple Choice

How can strong economic growth cause a current account deficit?


A) A strong economy means a larger supply of domestic goods,which increases exports.
B) A strong economy means consumers can afford more imports.
C) A strong economy permits increased savings.
D) A strong economy causes a government budget surplus.
E) A strong economy decreases the need for investment.

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