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can you help me explaining why the answer is C?
255 Low private savings and/or high investment tend to: A) produce a current account surplus that must be balanced by net cap


255. C is correct. Low private savings and/or high investment tend to produce a current account deficit that must be balanced
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Answer #1

Hello,


Current account deficit- Current account deficit means value of goods and services imports are greater than the value of exports. Savings should be low and the investment should be high, government should spend more on investment rather than doing savings.
Thats why option C is correct.

I hope this clear your doubt.

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