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Suppose Canada Has a Current Account Deficit in Its Balance

Question 106

Multiple Choice

Suppose Canada has a current account deficit in its balance of payments.This deficit is matched by


A) a trade surplus of the same size.
B) a deficit on the capital-service portion of the current account.
C) a capital account deficit of the same size.
D) a capital account surplus of the same size.
E) a change in the capital account of the same size.

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