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:

Uplift Union

A movement or approach prioritizing the overall well-being, education, and moral upliftment of workers alongside traditional union activities.

Industrial Unions

Unions that organize workers across an entire industry, regardless of their particular skills or trades, to collectively bargain for better conditions.

Craft Unions

Labor unions that represent workers in specific trades or crafts, advocating for their rights, wages, and working conditions.

Blue Collar

Referring to workers who engage in manual labor, often in industries such as manufacturing, construction, and maintenance.