All other things being equal, an increase in the government budget deficit will lead to in ___________the current account deficit.

Name: All other things being equal, an increase in the government budget deficit will lead to in ___________the current account deficit.
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Question

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An increase in the government budget deficit can lead to an increase in the current account deficit, as it may result in higher interest rates and a stronger currency, reducing exports and increasing imports.

All Other Things Being Equal, an Increase in the Government