Refer to the figure above. This country has comparative advantage in good

Suppose the United States initially has a trade deficit. Then U.S. firms increase their imports from Canada, financing that increase by borrowing from Canada

The current account deficit is now ________ and the capital and financial account surplus is now ________. A) larger; larger B) larger; smaller C) smaller; larger D) smaller; smaller

The conventional view among economists is that persistent budget deficits lead to ________ real interest rates and ________ private investment

A) higher; crowd in B) higher; crowd out C) lower; crowd in D) lower; crowd out