From 2004 to 2006,the U.S.budget was ________,private saving was ________ domestic investment,and foreign borrowing was ________.

Question

Quizplus · Accepted Answer

From 2004 to 2006, the U.S. budget was in a deficit, meaning spending exceeded revenue. Private saving was less than domestic investment, indicating that there was not enough money being saved by individuals to finance the investment needed for economic growth. As a result, foreign borrowing was necessary to cover the deficit in the budget. Therefore, option A, which indicates a budget deficit, less private saving than domestic investment, and foreign borrowing needed to finance the deficit, is the most appropriate choice.