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If a nation has a surplus in its current account,​ 1. it exports fewer goods than...

If a nation has a surplus in its current account,​

1. it exports fewer goods than it imports

2. it exports more goods than it imports

3. the value of its currency should fall

4. the value of its currency should rise

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Answer #1

Answer (4);  the value of its currency should rise

Balance of Trade is the measurement of exports and imports at a given time frame in an econoamy; This shall result in either Current Account Surplus or Current Account Deficit. Current Account Surplus is a situation whether the total exports are higher than that of total imports during a given period of time. This is a good situation where the exports are higher or the domestic demand is lower or imports are lower. And this situation results in the demand of the local curerntly and thus the increase in the value of the currency of such nation.

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