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When a Country Runs a Trade Deficit

Question 170

Multiple Choice

When a country runs a trade deficit,


A) it must be running a budget surplus.
B) its imports will become injections instead of leakages.
C) its exports will become leakages instead of injections.
D) foreigners will demand loanable funds from the country.
E) foreigners will supply loanable funds to the country equal to its trade deficit

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