The United States has experienced large and growing current account deficits for more than 20 years, whereas Japan has experienced large and growing current account surpluses for roughly the same period. The U.S. economy has grown at faster rates than Japan's over the past 10 years. What might explain the difference? Relate your answer to the relationship between the current account and GDP.

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The difference in current account balances between the United States and Japan as well as their respective economic growth rates can be partly explain... View the full answer