According to Ben Bernanke, the Primary Cause of the U

question 222

Multiple Choice

According to Ben Bernanke, the primary cause of the U.S. current account deficit of the early 2000s was:

• A) political unrest in developing African nations.
• B) the war against terror.
• C) the decreasing productivity of U.S. workers.
• D) a global savings glut that decreased interest rates and led to an excess of investment over savings in the United States.

---

Definitions:

Market Rate

The prevailing interest rate available in the marketplace for securities of similar risk and maturity to a bond.

Discount

A reduction from the usual cost of something, often provided as an incentive to encourage purchase.

Contract Rate

The agreed-upon interest rate specified in a contract, often related to loans or financial agreements.

Market Rate

The prevailing interest rate available in the marketplace on investments, loans, and deposits.