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Chako Chako
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8 years ago
Governments prefer to avoid excessive current account surpluses because
A) foreign investment in one firm may have beneficial technological spillover effects on other foreign producers that the investing firm does not capture.
B) the returns to domestic savings are more difficult to tax than those on assets abroad.
C) an addition to the home capital stock may increase domestic unemployment and therefore lead to higher national income.
D) domestic savings increase with more investment abroad.
E) an addition to the home capital stock may reduce domestic unemployment and therefore lead to higher national income.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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8 years ago
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Chako Author
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#2
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
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#3
7 years ago
Don't forget to vote my answer as best Nerd Face
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