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60) What accounted for much of policymakers\' concern over U.S. current account

ID: 1235220 • Letter: 6

Question

60)

What accounted for much of policymakers' concern over U.S. current account deficits in the 1980s and 1990s?


A)

Current account deficits require the United States to borrow funds from foreign savers.

B)

The current account deficits were thought to be largely responsible for the federal budget deficit.

C)

Current account deficits lower U.S. interest rates, thereby leading to reduced domestic saving.

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

Explanation / Answer

A) Current account deficits require the United States to borrow funds from foreign savers.