What accounted for much of policymakers' concern over U.S. current account deficits in the 1980s, 1990s, and 2000s?
A) The current account deficits were thought to be largely responsible for the federal budget deficit.
B) Current account deficits lower U.S. interest rates, thereby leading to reduced domestic saving.
C) Current account deficits require the United States to borrow funds from foreign savers.
D) The United States had signed international agreements in which it had pledged not to run a current account deficit for more than three years in a row.
C
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Suppose the equilibrium quantity of labor hired decreases and the equilibrium real wage rate increases. All else constant, this situation will also result in
A) more government outlay for the unemployed. B) higher output prices. C) lower output prices. D) fewer benefits for those still unemployed.
Why would people outside the United States choose to hold dollars?
What will be an ideal response?