Which of the Following Statements Best Describes the Relationship Between

question 21

Multiple Choice

Which of the following statements best describes the relationship between the capital and the current account?

• A)When the current account is in deficit, so too will be the capital account.
• B)When the current account is in surplus, so too will be the capital account.
• C)A current account deficit must be paid for by selling Australian assets to foreign interests.
• D)A current account deficit must be paid for by selling more exports.
• E)The current account balance must always equal zero.

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