As shown in Table 20.1, in 2013 the United States was running a current account deficit. Would

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As shown in Table 20.1, in 2013 the United States was running a current account deficit. Would each of the following events increase (I) or decrease (D) the current account deficit?

(a) U.S. companies, the largest investors in Switzerland, see even more promising investment opportunities there.

(b) The Netherlands, one of the largest foreign investors in the U.S. finds investment opportunities less attractive.

(c) Unemployment rises and recession deepens in the United States.

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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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