Identify possible sources of the current account deficits


Problem

During the 1980s, the United States experienced "twin deficits" in the current account and government budget. Since 1998 the U.S. current account deficit has grown steadily along with rising government budget deficits. Do government budget deficits lead to current account deficits? Identify other possible sources of the current account deficits. Do current account deficits necessarily indicate problems in the economy?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Identify possible sources of the current account deficits
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