The center piece of macroeconomic stabilization program intended to eliminate the large current-account deficits was the reduction of

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Quizplus · Accepted Answer

The reduction of budget deficits is the most effective way to address current-account deficits, as it helps to reduce demand for imports by lowering aggregate spending in the economy. This can be achieved through a combination of spending cuts and tax increases. While reducing capital outflows or MNC profits may also help address current-account deficits, they are less direct and may have unintended consequences. Unemployment and exports are not directly related to the current-account deficit.

The Center Piece of Macroeconomic Stabilization Program Intended to Eliminate