In the United States, during the period 1990 to 2009, the current account deficit greatly ____ because of a(n) ____ in the trade deficit, thus, GDP was lower than GNE.

Question

Quizplus · Accepted Answer

The current account deficit in the United States increased from 1990 to 2009 primarily due to an increase in the trade deficit. This situation implies that the country was importing more than it was exporting, leading to a larger gap in the current account. Consequently, Gross Domestic Product (GDP) was lower than Gross National Expenditure (GNE) because more was being spent on foreign goods and services than the country was earning from its exports.

In the United States, During the Period 1990 to 2009