Most economists contend that any reduction in the current account deficit is better achieved through increased national saving than through reduced domestic investment.

Question

Quizplus · Accepted Answer

This statement is true according to most economists as increased national saving results in a decrease in imports, which can help reduce the current account deficit. Reducing domestic investment, on the other hand, can have negative effects on economic growth and competitiveness.

Most Economists Contend That Any Reduction in the Current Account