In 2005,Federal Reserve governor Ben Bernanke said in a speech: "Over the past decade a combination of diverse forces has created a significant increase in the global supply of saving-a global saving glut-which helps to explain the increase in the U.S.current account deficit." Is this statement consistent with the economic theory in this chapter? That is,would a "global saving glut" be able to explain the growing U.S.current account? Explain.

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The Answer of In 2005,Federal Reserve governor Ben Bernanke said in a speech: "Over the past decade a combination of diverse forces has created a significant increase in the global supply of saving-a global saving glut-which helps to explain the increase in the U.S.current account deficit." Is this statement consistent with the economic theory in this chapter? That is,would a "global saving glut" be able to explain the growing U.S.current account? Explain.

In 2005,Federal Reserve Governor Ben Bernanke Said in a Speech