Describe the current account deficit

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Question: The United States currently has a current account deficit. How would each of the following events affect this deficit, assuming no other changes?

a. U.S. economic growth slows relative to the rest of the world.

b. U.S. personal savings rates increase.

c. U.S. federal budget deficits decline.

d. Foreign rates of return (in financial assets) rise relative to rates of return in the United States.

Reference no: EM131481656

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