A nation will a current account deficit will be ?
Correct answer: D. going further into debt with other nations
- A. lending more money to other nations
- B. experiencing a surplus in exports of goods an services
- C. reducing its indebtedness to other nations
- D. going further into debt with other nations
Explanation
A current account deficit means a country is spending more abroad than it earns from current international transactions. It must finance the gap by borrowing from, or accumulating obligations to, other countries.
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