Suppose a country has a current account surplus and that there is no intervention by finance ministries or central banks. This current account surplus indicates that the country has

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A current account surplus implies that a country is exporting more than it is importing, leading to an inflow of foreign currency. This surplus must be balanced by a deficit in the financial account, where the country becomes a net lender to the rest of the world, investing more abroad than foreign entities invest in the country.

Suppose a Country Has a Current Account Surplus and That