In the 1980s, the U

Multiple Choice

In the 1980s, the U.S.current account deficit was financed by:

A) large outflows of domestic capital to other countries.
B) large inflows of capital from private foreign investment in the United States.
C) loans made by U.S.residents to the government.
D) large inflows of foreign government capital.
E) the Tax Reform Act of 1986, which increased income taxes for the wealthy.