The Current Account Deficits Incurred by the United States in the 1980s

question 86

Multiple Choice

The current account deficits incurred by the United States in the 1980s were caused, in the opinion of many economists, by

• A)federal budget deficits.
• B)"flight to quality" as foreign investors favoured U.S.investments.
• C)a sharp decline in private saving.
• D)accelerating economic growth in the US economy.
• E)both B and C.

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Definitions:

Confirming Instances

Examples or occurrences that support a theory or a hypothesis.

Generalization

A broad statement or rule that applies to many examples, derived from specific cases.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Conclusion

The final part of something, notably an argument or text, where the main points are resolved or summarized.