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Economics
MEDIUM
ENGLISH
Economics
A capital account surplus might be expected to cause a current account deficit because the associated ?
A
capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
Option A
B
capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
Option B
capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
Correct answer
D
capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit
Option D
Correct answer: C
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