A deficit in a country's current account balance occurs whenever

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A deficit in a country's current account balance occurs whenever there is an excess of money outflows from the country compared to its money inflows. This means that the country is spending more on imports, investments abroad, or transfer payments to other countries than it is receiving from exports, investments from other countries, or transfer payments received from abroad. This results in a net outflow of money from the country, leading to a current account deficit.

A Deficit in a Country's Current Account Balance Occurs Whenever