To pay for a current account deficit, a country can

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Borrowing money from abroad is a common way for a country to finance a current account deficit. It allows the country to continue importing goods and services without having to immediately reduce its consumption or investment. However, this solution can lead to the accumulation of debt and should be managed responsibly to avoid a debt crisis. Transferring money from the capital account or increasing official reserves are not effective solutions for correcting a current account deficit, and lending money abroad does not help to finance the deficit.

To Pay for a Current Account Deficit, a Country Can