Explore BrainMass
Share

Explore BrainMass

    Is the United State's current account deficit a problem for the economy?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The media and others suggest that the current account deficit run by the U.S. is a problem for the economy. What do you think? What action(s) would you advise federal government officials to take on this issue?

    © BrainMass Inc. brainmass.com October 9, 2019, 10:21 pm ad1c9bdddf
    https://brainmass.com/economics/exchange-rates/is-the-united-state-s-current-account-deficit-a-problem-for-the-economy-217648

    Solution Preview

    Yes, the current account deficit run by the US is indeed a problem for the economy. The current account deficit in USA is due to excess spending in the economy and also caused by government borrowing which leads to a escalation in Aggregate Demand and thus growing demand for imports. A escalating current account deficit is thus, sign of ...

    Solution Summary

    This solution states that the current account deficit run by the US is a problem for the economy and why in 216 words.

    $2.19