When a country has a current account surplus, the country
A)is always borrowing from domestic residents.
B)always has a large government budget deficit.
C)is always lending abroad.
D)always has a large government budget surplus.
E)is always borrowing from abroad.

Question

Quizplus · Accepted Answer

A current account surplus occurs when a country's exports exceed its imports, meaning the country is exporting more goods and services than it is importing. This results in a net inflow of funds from abroad, which implies that the country is lending to other countries or investing abroad.

When a Country Has a Current Account Surplus, the Country