You just read that forecasters predict Canada will run a current account deficit in 2004.From this you would infer that Canada will also
A)run a capital account deficit in 2004.
B)decrease its official reserve assets.
C)run a balance of payments surplus.
D)decrease its holding of net foreign assets.

Question

Quizplus · Accepted Answer

A current account deficit implies that Canada is importing more goods, services, and capital than it is exporting, which typically leads to a decrease in net foreign assets as the country may need to borrow from abroad or sell assets to finance the deficit.

You Just Read That Forecasters Predict Canada Will Run a Current