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Those Who Say the Growing Current Account Deficit in the United

Question 113

Multiple Choice

Those who say the growing current account deficit in the United States is a significant problem make the argument that:


A) the United States is financing current expenditures by borrowing from foreigners and these debts will ultimately have to be paid off.
B) the United States is investing too much in other countries and not enough domestically.
C) the large current account deficit will only lead to a depreciation of the U.S.dollar,hence hurt domestic exporters.
D) lower investment in the United States as a result of the current account deficit will ultimately lead to decreases in wealth and economic growth in the United States.

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