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Consider Canada's Balance of Payments

Question 40

Multiple Choice

Consider Canada's balance of payments.Suppose Canada's capital account has a deficit of $10 billion in 2013.It follows that Canada must have a current account ________ of ________,meaning that net payments of this amount from the sale of goods and services (plus net investment income) are flowing ________ Canada.


A) surplus; $10 billion; into
B) deficit; $10 billion; out of
C) deficit; less than $10 billion; out of
D) surplus; $10 billion; out of
E) deficit; $10 billion; into

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