Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

Over the past few years, the US has recorded a deficit on the overall current account of its balance of payments. What might have caused the deficit to become larger?

  • Aincreased competitiveness of goods made in the US
  • Bincreased earnings by US investors in foreign companies
  • Cincreased numbers of overseas visitors to the US
  • Dincreased spending on US military bases abroad

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