If a country realizes a current account deficit in its balance-of-payments, it becomes a net supplier of funds to the rest of the world.

Question

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If a country is experiencing a current account deficit, it means that it is importing more goods and services than it is exporting, which implies a net outflow of funds. Therefore, the country becomes a net demander of funds from the rest of the world.

If a Country Realizes a Current Account Deficit in Its