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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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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