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A Nation with an Official Settlements Balance of -$100 Billion

Question 62

Multiple Choice

A nation with an official settlements balance of -$100 billion is likely to experience a


A) balance of payments surplus and accumulate $100 billion in international reserves.
B) balance of payments deficit and accumulate $100 billion in international reserves.
C) balance of payments surplus and a decline of $100 billion in international reserves.
D) balance of payments deficit and a decline of $100 billion in international reserves.

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