The global saving glut contributes to large current account _____ in the recipient countries of loanable funds.

Question

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The global saving glut refers to the excess savings in countries with trade surpluses, which are loaned and invested in countries with trade deficits. This results in an inflow of loanable funds and can contribute to larger current account deficits in the recipient countries, as they borrow more than they save.

The Global Saving Glut Contributes to Large Current Account _____