How Can Fiscal Policy Cause a Current Account Deficit

question 79

Multiple Choice

How can fiscal policy cause a current account deficit?

• A) Decreased government spending increases imports.
• B) Increased government borrowing attracts foreign investment funds.
• C) Increased government spending stimulates the economy and imports.
• D) Increased government spending causes higher domestic savings.
• E) Decreased government spending leaves room for foreign investment.

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Definitions:

Confidence Interval

A range of values, derived from a set of data, within which there is a specified probability that the value of a parameter lies.

Typing Speeds

Measure of the number of words or characters one can type in a fixed amount of time, often used to assess keyboarding proficiency.

Reading Speeds

Refers to the rate at which an individual can read and comprehend text.

Linear Correlation

A measure of the strength and direction of a linear relationship between two quantitative variables.