Concerning a country's business cycle,____ is commonly associated with large or growing current account deficits:
A) Rapid growth rates of production and employment
B) Slow growth rates of production and employment
C) Falling interest rates on government securities
D) Falling interest rates on corporate securities

Question

Quizplus · Accepted Answer

When there are rapid growth rates of production and employment, there is typically an increase in consumer spending and demand for imports, leading to a large or growing current account deficit.

Concerning a Country's Business Cycle,____ Is Commonly Associated with Large