Other things equal, if U.S. disposable income falls, imports will _____ and the current account deficit will _____.

Question

Quizplus · Accepted Answer

When U.S. disposable income falls, consumers have less money to spend, leading to a decrease in the demand for imported goods. This results in a decrease in imports. With fewer imports, the current account deficit, which is negatively affected by higher imports, will decrease.

Other Things Equal, If U