Under the simplifying assumption made in the text, a current account deficit exists when
A) net exports are positive.
B) financial flows out of a country for goods and services is less than financial flows into the country for its goods and services.
C) a country has a trade deficit.
D) an economy buys less from foreigners than it sells to them.

Question

Quizplus · Accepted Answer

A current account deficit occurs when a country imports more goods and services than it exports, leading to a trade deficit.

Under the Simplifying Assumption Made in the Text, a Current