Recall the Application About the Factors Which Allow the United

question 27

Multiple Choice

Recall the Application about the factors which allow the United States to continue to run large current account trade deficits with the rest of the world to answer the following question(s) . The 2006 Economic Report of the President addressed the issue of whether the United States can continue to run large current account deficits. The report stated that the current account deficits would eventually be reduced and highlighted a number of factors that suggested the deficits could continue for a long period of time.
-According to this Application, in order for the United States to continue to run large current account deficits

• A) the United States needs to purchase foreign assets.
• B) other countries need to purchase U.S. assets.
• C) other countries need to sell U.S. assets.
• D) the United States must increase its saving rate.