Consider an Increase in a Country's Current Account Deficit

Multiple Choice

Consider an increase in a country's current account deficit.Which of the following statements best describes the desirability of this change?

A) It is desirable regardless of the cause of the change.
B) It is undesirable regardless of the cause of the change.
C) It is not desirable if it is caused by an increase in domestic investment.
D) It might be desirable depending on the cause of the change.
E) It is desirable if it is caused by a reduction in the level of private saving.