Explain How Fiscal Policy May Increase the Current Account Deficit

question 43

Essay

Explain how fiscal policy may increase the current account deficit.Explain how it may decrease the current account deficit.

---

Definitions:

Ronald Reagan

The 40th President of the United States, serving from 1981 to 1989, known for his economic policies dubbed "Reaganomics," as well as his role in ending the Cold War.

Domestic Policy

Policy decisions, plans, and actions that are undertaken by a government to deal with issues within its own borders, covering areas such as education, health, housing, and transportation.

1980s

A decade characterized by major global events, technological advancements, and cultural shifts, including the end of the Cold War and the rise of personal computing.

Money

A medium of exchange in the form of banknotes and coins, used to facilitate transactions for goods and services.