As shown in Table 22.1, in 2016 the United States was running a current account deficit. Would

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As shown in Table 22.1, in 2016 the United States was running a current account deficit. Would the following events increase or decrease 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 United States, finds U.S.

investment opportunities less attractive.

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

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The Micro Economy Today

ISBN: 9781118152003

15th Edition

Authors: Bradley R. Schiller, Karen Gebhardt

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