An economy in which output exceeds absorption
A)will send goods abroad and have a current account surplus.
B)is a net importer with a current account deficit.
C)is a net borrower in the international market.
D)will have a capital account deficit.

Question

Quizplus · Accepted Answer

When output exceeds absorption, the economy will have excess goods which can be exported to other countries, leading to a current account surplus.

An Economy in Which Output Exceeds Absorption