Asked by Kailyn Holmes on Apr 30, 2024
Verified
Between 2006 and 2009,our current account deficit
A) increased.
B) decreased.
C) stayed the same.
Current Account Deficit
A situation where a country's total imports of goods, services, and transfers exceed its total exports.
- Understand the principle of equilibrium in global transactions and the linkage between a country's current and capital accounts.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
B
Explanation :
Between 2006 and 2009, the global financial crisis occurred, leading to a decrease in consumer and business spending. This resulted in a reduction in imports, which are a key component of the current account deficit. Consequently, the current account deficit decreased during this period.
Learning Objectives
- Understand the principle of equilibrium in global transactions and the linkage between a country's current and capital accounts.