Other things being equal,an increase in the current account deficit could result from

Question

Quizplus · Accepted Answer

A rise in the government's budget deficit means that the government is spending more money than it is receiving in revenue, which can lead to an increase in imports or a decrease in exports. This, in turn, can result in a larger current account deficit. Therefore, a rise in the government's budget deficit is the best choice because it directly affects the current account.

Other Things Being Equal,an Increase in the Current Account Deficit