A current account deficit for the United States necessarily reduces the standard of living for American households.

Question

Quizplus · Accepted Answer

A current account deficit does not necessarily reduce the standard of living for American households. While a current account deficit may lead to an outflow of funds from the country, it can also indicate greater investment in the economy and higher levels of economic growth. Additionally, American households may still benefit from lower-priced imports resulting from the deficit.

A Current Account Deficit for the United States Necessarily Reduces