Suppose Canada has a current account deficit in its balance of payments.This deficit is matched by

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A current account deficit in a country's balance of payments is typically matched by a capital account surplus of the same size. This is because the deficit indicates that the value of the goods, services, and primary income a country imports exceeds the value of what it exports. To finance this deficit, the country must borrow from other countries or sell domestic assets to foreign entities, which is recorded as a capital account surplus.

Suppose Canada Has a Current Account Deficit in Its Balance