A higher current account deficit is caused by a declining domestic economy.

Question

Quizplus · Accepted Answer

A current account deficit occurs when a country imports more goods and services than it exports. While a declining domestic economy may contribute to a widening deficit, there are multiple factors that can affect the balance of trade, such as exchange rates, government policies, and global economic conditions. Therefore, a higher current account deficit cannot be solely attributed to a declining domestic economy.

A Higher Current Account Deficit Is Caused by a Declining