When a country runs a current account deficit to finance an increase in domestic investment expenditures, it causes

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When a country runs a current account deficit to finance an increase in domestic investment expenditures, it means that the country is borrowing from abroad to finance its investment. This increase in investment expenditures leads to an increase in the country's capital stock, which in turn, increases its productive capacity. Therefore, it results in an increase in future output possibilities, and ultimately, economic growth.

When a Country Runs a Current Account Deficit to Finance