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Suppose a Country Has a Balance on Its Current Account

Question 60

Multiple Choice

Suppose a country has a balance on its current account of negative $10 billion,while the balance on its capital account is a positive $4 billion.What can we conclude?


A) That the country has a surplus on its balance of trade.
B) That the country has a deficit on its balance of trade.
C) That its reserves of foreign currencies are falling.
D) That the country has a balance of payments surplus.
E) That the country has a balance of payments of zero.

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