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6 4. The burden of a current account deficit would be the least if a nation uses what it borrows to linance: a. Unemployment compensation
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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 Step by Step Solution
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