Consider a country's balance of payments.Other things being equal,an increase in the current account deficit may be due to

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An increase in the current account deficit indicates a higher level of imports or capital outflows than exports or capital inflows. This could be caused by a fall in domestic investment or an increase in private savings, but it is more likely to be caused by a fall in the government's budget surplus or an increase in the government's budget deficit. When the government reduces its budget surplus or increases its budget deficit, it increases its demand for funds, which can lead to higher interest rates and a more attractive investment environment for foreign investors. This leads to an increase in capital outflows, which in turn increases the current account deficit.

Consider a Country's Balance of Payments