Which of the Following Is True of a Country That

Multiple Choice

Which of the following is true of a country that is running a deficit on a balance-of-payments current account?

A) It is importing more goods and services than it is exporting.
B) It will result in steady appreciation of the country's currency.
C) It will lead to very low interest rates in the country.
D) It will lead to a shortage of the country's currency in the foreign exchange market.