Periods of high economic growth are often linked with a deterioration in the current account of the balance of payments. Which explanation for this trend is not valid?
- AEconomic growth raises domestic consumption, leaving very little to sell to overseas consumers.
- BEconomic growth raises domestic output, leading to lower prices and more price-competitive goods both at home and abroad.
- CEconomic growth raises incomes and leads to rising demand for foreign goods.
- DEconomic growth results in rising requirements of inputs from other countries.