An Inflow of Capital and a Trade Deficit  Are More Dangerous  When

Multiple Choice

An inflow of capital and a trade deficit  are more dangerous  when

A) the inflow of capital is channeled into private investment.
B) the inflow of capital is  used to finance current consumption and/or  channeled into unproductive projects.
C) the unemployment rate of the country is low, because this will mean the capital inflow will be inflationary.
D) the investment rate is already high and the unemployment rate low.