The case of New Zealand,described in the text,concludes that a country's current account deficits are not sustainable if a country's
A) prospects for long term economic growth are above its global deficit growth.
B) ability to sustain current account deficits is questionable.
C) unproductive industrial sectors and its prospects for long run growth.
D) labor productivity is below that of most other countries.
E) exchange rate has fallen relative to other currencies.
Correct Answer:
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