BUS Unit 5 DB SA four Essay Example | Topics and Well Written Essays - 250 words - 1

BUS Unit 5 DB SA four - Essay Example This may also indicate that the government expenditure is higher than what it can produce. However, it can also be observed that the current account deficit is not very bad to the economy especially if the deficit has been a result of investment initiatives that are designed to generate revenue in the short to long run period. For instance, in the paragraph above, the U. S deficit is viewed as a big problem given that previously stood at 1. 1 trillion dollars but has been halved to 680 billion dollars. This shows a 51 percent decrease in the current account deficit and it can be attributed to different policy changes such budget cuts, tax increments on those with a larger income bracket as well as stimulating economic growth. In this case, it can be seen that the current account deficit for USA is still controllable from within the country so it is not that bad. The deficit only becomes bad when the economy is now sustained on external