In Order to Reduce Its Current Account Deficit,the United States

question 32

Multiple Choice

In order to reduce its current account deficit,the United States must do which of the following?

• A) reduce the federal budget deficit
• B) raise national product relative to national spending
• C) increase savings relative to domestic investment
• D) all of the above

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Definitions:

Tenth Amendment

An amendment to the U.S. Constitution stating that the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Federal Government

The national government of the United States, composed of three branches: legislative, executive, and judicial.

Lower-Level Governments

Administrative divisions within a country that operate below the level of the central government, such as states or provinces.

Direct Taxation

Taxes that are imposed directly on an individual's income or wealth, and on corporations' profits.