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4. The burden of a current account deficit would be the least if a nation uses what it borrows to linance: a. Unemployment compensation benefits b. Social Security benefits c. Expenditures on food and recreation d. Investment on plant and equipment 5. To temporarily offset a depreciation in the dollar's exchange value, the Federal Reserve could the U.S. money supply which would promote a (an) in U.S. interest rates and a (an) in investment flows to the United States. a. Increase, decrease, decrease b. Increase, increase, increase c. Decrease, decrease, increase d. Decrease, increase, increase 6. Reducing a current account deficit requires a country to: a. Increase private saving relative to investment b. Increase private consumption relative to saving c. Increase private investment relative to consumption d. Increase private investment relative to saving