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The situation of a net creditor nation running current account deficits is worrisome if: a. investment...

The situation of a net creditor nation running current account deficits is worrisome if:

a. investment is high and rising. b. the net creditor status is smaller and the deficit is larger.

c. C + G per capita is falling rapidly.

d. GDP growth rate is very high.

e. real C + G per capita is very small.

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Answer #1

b. the net creditor status is smaller and the deficit is larger.

(It is worrisome if the net creditor status is smaller and the deficit is larger, and inverse of options a and c.)

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