Chapter 33, Problem 2QFR

To determine

(a)

To explain:

The impact on current account deficit due to the slow economic growth in U.S. than rest of the countries.

To determine

(b)

To explain:

The impact on current account deficit due to increase in personal savings rate.

To determine

(c)

To explain:

The impact on current account deficit when there is a decrease in the federal budget deficits.

To determine

(d)

To explain:

The impact on current account deficit when there is increase in foreign rates of return.