The USCurrent Account Deficit Improved Slightly from 2007 to 2010 Because

question 5

Multiple Choice

The U.S.current account deficit improved slightly from 2007 to 2010 because

• A)spending on imports fell due to an overall fall in consumption.
• B)state, local, and federal government budget deficits increased.
• C)worldwide economic growth spurred U.S. exports.
• D)capital controls restricted capital inflow.

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Definitions:

Personality

A unique set of emotional, thought, and behavioral patterns that define an individual.

Reality Principle

A concept in psychoanalytic theory where the ego manages the demands of the id and the external world by delaying gratification and dealing with the reality of situations.

Rational Means

Approaches or methods based on reason and logic rather than emotions or conventions.

Immediate Gratification

The desire to experience fulfillment without delay or deferment, often prioritizing short-term rewards over long-term outcomes.