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If a Nation's Balance on Current Account Is a Negative

Question 52

Multiple Choice

If a nation's balance on current account is a negative $20 billion, while its balance on capital account is a positive $16.5 billion, we can conclude with certainty that this nation is experiencing:


A) a merchandise trade deficit.
B) a merchandise trade surplus.
C) a reduction in its stock of foreign currency.
D) a balance of payments surplus.

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