When current account deficits are used to finance investment spending,such deficits may be self-correcting because
A) they promote more responsible government policies.
B) the resulting increase in the capital stock over time shifts the output supply curve to the right.
C) the resulting increase in the capital stock over time shifts the output demand curve to the right.
D) the resulting increase in national indebtedness increases labor demand.
Correct Answer:
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Q1: A current account deficit is
A) good because
Q2: In a two-period model with production,an increase
Q3: In a two-period model,holding everything else constant,an
Q5: In a two-period model with default,the nation
Q6: In a two-period model with default,if the
Q7: In a two-period model,holding everything else constant,an
Q8: In a two-period model with production,a permanent
Q9: In a two-period model,holding everything else constant,an
Q10: A small open economy is an economy
A)
Q11: In a two-period model,as long as wealth
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