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If Country a Runs a Trade Deficit Against Country B

Question 15

Multiple Choice

If Country A runs a trade deficit against Country B for one year,then:


A) it must compensate Country B during that year with a promissory note.
B) it must compensate Country B by exporting its excess production in the future.
C) it may continue to run a deficit for all time.
D) none of the above
E) a and b are correct.

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