A country with a negative current account (trade deficit)has:

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Quizplus · Accepted Answer

A negative current account implies that the country is importing more goods and services than it is exporting, resulting in a trade deficit. A positive capital account occurs when a country is receiving more investment flows from foreign sources than it is sending out, which can help finance the trade deficit. Therefore, a country with a negative current account typically has a positive capital account to balance out the deficit.

A Country with a Negative Current Account (Trade Deficit)has