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Macroland Has a Trade Deficit

Question 14

Multiple Choice

Macroland has a trade deficit. What impact does this have on Macroland's balance of payments accounts?


A) The inflow of funds will be a positive influence in the capital account.
B) The inflow of funds will be a negative influence in the capital account.
C) The outflow of funds will be a positive influence in the current account.
D) The outflow of funds will be a negative influence in the current account.

Correct Answer:

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