Consider the Balance of Payments for a Small Country

question 2

Multiple Choice

Consider the balance of payments for a small country.Suppose that in this country private saving is $4 million,its investment is $10 million,government purchases are $6 million,and net tax revenues are $15 million in a given year.The current account balance for this country is a

• A)deficit of $6 million.
• B)deficit of $9 million.
• C)surplus of $3 million.
• D)surplus of $9 million.
• E)surplus of $15 million.

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