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 fewer goods and services than it is exporting.
B) It may result in depreciation of the country's currency on the foreign exchange market.
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.
E) It is engaging in neo-mercantilism.