The current account deficits incurred by the United States in the 1980s were caused, in the opinion of many economists, by
A) federal budget deficits.
B) a sharp decline in private saving.
C) "flight to quality" as foreign investors favored U.S. investments.
D) Both B and C are correct.
A
Economics
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All else remaining equal, if the amount of checkable deposits increase, this will increase the size of:
a) only M1. b) only M2. c) M1 and M2. d) neither M1 nor M2.
Economics
In the open-economy macroeconomic model, the market for loanable funds equates national saving with
a. domestic investment. b. net capital outflow. c. the sum of national consumption and government spending. d. the sum of domestic investment and net capital outflow.
Economics