According to researchers at the Federal Reserve, the loss of jobs associated with a deficit in the current account tends to be
A) offset by the increase of jobs associated with a surplus in the capital account.
B) reinforced by the decrease of jobs associated with a surplus in the capital account.
C) a threat to the level of employment for the economy as a whole.
D) of no long-run economic consequence for workers who lose their jobs.

Question

Quizplus · Accepted Answer

A deficit in the current account often corresponds to a surplus in the capital account, which can lead to job creation in sectors that benefit from foreign investment, offsetting job losses from the current account deficit.

According to Researchers at the Federal Reserve, the Loss of Jobs