Suppose Canada spends more on foreign goods and services than foreigners spend on our goods and services.Then
A) Canada must borrow an amount equal to national saving.
B) Canada must borrow an amount equal to imports minus exports.
C) the rest of the world may or may not finance Canada's trade deficit.
D) Canada must borrow an amount equal to consumption expenditure plus investment.
E) none of the above.
Correct Answer:
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