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If There Is a Current Account Deficit of £2 Billion

Question 25

Multiple Choice

If there is a current account deficit of £2 billion, then


A) there must be a surplus of £2 billion on trade in services.
B) there must be a net errors and omissions item of + £2 billion.
C) there must be an equivalent deficit on the capital plus financial accounts.
D) the overall capital plus financial accounts (including net errors and omissions) must be in surplus by £2 billion.

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