The U.S. current account deficit can be explained by:

Name: The U.S. current account deficit can be explained by:
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The current account deficit is the result of the excess of imports over exports (part C), which is financed by foreign investment (part B). Therefore, both B and C are necessary to explain the U.S. current account deficit. Choice A is incorrect because the demand for dollars may have an effect on exchange rates, but it does not directly explain the current account deficit.

The US Current Account Deficit Can Be Explained By