Reducing a current account deficit requires a country to:
A) Increase the government's deficit and increase private investment relative to saving
B) Increase the government's deficit and decrease private investment relative to saving
C) Decrease the government's deficit increase private investment relative to saving
D) Decrease the government's deficit and decrease private investment relative to saving

Question

Quizplus · Accepted Answer

Reducing a current account deficit involves decreasing the government's deficit and decreasing private investment relative to saving, as this would reduce the need for foreign capital and improve the balance of payments.

Reducing a Current Account Deficit Requires a Country To