Multiple Choice
Which of the following statements is true?
A) Inflows of foreign investment are necessary to prevent future balance of payments deficits.
B) A current account surplus is always the result of a capital account deficit.
C) A current account surplus is always the result of a trade account surplus.
D) A capital account surplus may cause outflows of foreign investment income in the future.
Correct Answer:

Verified
Correct Answer:
Verified
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