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When a Country Runs a Current Account Deficit to Finance

Question 56

Multiple Choice
When a country runs a current account deficit to finance an increase in domestic investment expenditures,it causes

When a country runs a current account deficit to finance an increase in domestic investment expenditures,it causes


A) taxes to rise.
B) an increase in capital stock and future productive capacity.
C) consumption smoothing over time.
D) a government deficit to occur.
E) the real interest rate to increase.

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