An increase in the current account deficit cannot be generated by:
a. A decline in exportstraditional
b. Increase in external savings
c. Increase in private consumption
d. Decline in government revenue for taxes
e. An increase in current transfers
For me, all of them generate a deficit in CC.
According to the equation
CC = X-M = (S-I) - (G-T)
Is there something I am missing?