When a country has a current account surplus then it is: Multiple Choice lending to foreigners and increasing its net...
When a country has a current account surplus then it is:
Multiple Choice
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lending to foreigners and increasing its net foreign wealth.
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borrowing from foreigners and/or reducing its holdings of foreign denominated financial assets.
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reducing its net foreign wealth.
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borrowing from foreigners, reducing is holdings of foreign denominated financial assets, and reducing its net foreign wealth.
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None of the options.
Homework Answers
A current account surplus is a positive current account balance, indicating that a nation is a net lender to the rest of the world.
Thus the answer is a) lending to foreigners and increasing its net foreign wealth.
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