In the 1980s, the U

question 80

Multiple Choice

In the 1980s, the U.S.current account deficit was financed by:

• A)large outflows of domestic capital to other countries.
• B)large inflows of capital from private foreign investment in the United States.
• C)loans made by U.S.residents to the government.
• D)large inflows of foreign government capital.
• E)the Tax Reform Act of 1986, which increased income taxes for the wealthy.