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Can a Nation Have in Its Balance of Payments a Current

Question 20

Multiple Choice

Can a nation have in its balance of payments a current account deficit at the same time as a less-than-equal capital account surplus?


A) No,because current and capital accounts must both balance,by accounting convention.
B) No,because a current account deficit must be offset by an equal capital account surplus so the balance of payments balances overall.
C) Yes,and the nation would have an overall deficit in its balance of payments.
D) Yes,and the nation would have an overall surplus in its balance of payments.

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