A Nation Running a Current Account Deficit Must Either Be

question 54

Multiple Choice

A nation running a current account deficit must either be ________ its indebtedness to foreigners in the private sector or ________ its indebtedness to foreign governments.

• A)increasing,increasing
• B)increasing,decreasing
• C)decreasing,increasing
• D)decreasing,decreasing

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Definitions:

Reaganomics

An economic policy attributed to U.S. President Ronald Reagan, characterized by tax cuts, deregulation, increased defense spending, and a reduction in government welfare programs.

Poorest Fifth

A term used to describe the bottom 20% of the population in terms of income or wealth distribution.

Income Dropped

A decrease in the amount of money received by an individual, household, or group over a certain period.

Nebraskan Meatpacking Plants

Industrial facilities in Nebraska, known for processing and packing meat, which have significant economic and social impacts on local communities.