Governments prefer to avoid excessive

Governments prefer to avoid excessive current account surpluses because

A.the returns to domestic savings may be easier to tax than those on assets abroad.

B.an addition to the home capital stock may reduce domestic unemployment and therefore lead to higher national

C.domestic investment by one firm may have beneficial technological spillover effects on other domestic producers that the investing firm does not

D.All of the

E.None of the

Answer: D

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