When there is a current account deficit there is a capital account surplus.

Name: When there is a current account deficit there is a capital account surplus.
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This is because a current account deficit means a country is spending more on imports and foreign investments than it is earning from exports and international investments. This creates a demand for foreign currency, which is supplied through a capital account surplus as foreign investors bring in their funds to finance the deficit.

When There Is a Current Account Deficit There Is a Capital