When Current Account Deficits Are Used to Finance Investment Spending,such

Multiple Choice

When current account deficits are used to finance investment spending,such deficits may be self-correcting because

A) they promote more responsible government policies.
B) the resulting increase in the capital stock over time shifts the output supply curve to the right.
C) the resulting increase in the capital stock over time shifts the output demand curve to the right.
D) the resulting increase in national indebtedness increases labour demand.
E) interest rates decline.