When the current account is in deficit,the capital account must

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When the current account is in deficit (more money is flowing out of the country than coming in), the capital account must have an equal and offsetting surplus (more foreign investment is coming into the country than going out). This is because a deficit in the current account means that the country is relying on foreign borrowing to finance its consumption and investment, and this borrowing must be offset by an inflow of foreign investment in the capital account to maintain overall balance in the balance of payments.

When the Current Account Is in Deficit,the Capital Account Must