In order to reduce its current-account deficit,the United States would NOT do which of the following?

Question

Quizplus · Accepted Answer

Decreasing savings relative to domestic investment would actually increase the current-account deficit, making it the opposite of what is necessary to reduce it. Therefore, option D would not be pursued. The other three options, reducing the federal budget deficit, raising national product relative to national spending, and increasing savings relative to domestic investment, would all be pursued as ways to reduce the current-account deficit.

In Order to Reduce Its Current-Account Deficit,the United States Would