What leads to chronic deficits on U.S. current account?
A) declining value of the dollar and uncertainty about its future
B) devaluation of the dollar
C) imports being greater than exports year after year
D) a devaluation of the dollar and a favorable balance of trade
E) more exports and fewer imports year after year

Question

Quizplus · Accepted Answer

Chronic deficits on the U.S. current account are primarily caused by imports exceeding exports consistently over time. This imbalance means the country is buying more from abroad than it is selling, leading to a deficit.

What Leads to Chronic Deficits on U