Solved

Those Who Say the Growing Current Account Deficit in the United

Question 92

Multiple Choice

Those who say the growing current account deficit in the United States is not a significant problem make the argument that:


A) the current account deficit is offset by an equally large capital account deficit,which ultimately leads to appreciation of the U.S.dollar.
B) the large current account deficit will ultimately lead to a current account surplus.
C) the current account deficit may hurt exporters,but American consumers gain as a result of lower relative prices.
D) the increased investment in the United States as a result of the current account deficit will ultimately lead to increases in wealth and economic growth in the United States.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents