The Current Account Deficits Incurred by the United States in the 1990s

question 56

Multiple Choice

The current account deficits incurred by the United States in the 1990s and early 2000s 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)the US economy enjoying the fastest growth in its history.
• E)both B and C.

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Definitions:

Solidary Incentives

Motivations based on the pleasure, status, or companionship derived from belonging to a group or organization.

Economic Opportunities

The prospects within an economy for individuals to find employment, start businesses, and achieve financial success and advancement.

Ethical Beliefs

The set of moral principles or values that guide an individual's or society's behavior and choices.

Unionization

The process of organizing workers into unions to collectively bargain for better wages, benefits, and working conditions.