If a country is importing more than they are exporting, the current account will have a__________ Balance and the capital and financial account will have a balance_________.

Question

Quizplus · Accepted Answer

When a country imports more than they export, it has a trade deficit, which creates a negative balance in the current account. In order to finance this deficit, the country may borrow from other countries or attract foreign investment, resulting in a positive balance in the capital and financial account.

If a Country Is Importing More Than They Are Exporting