A Current Account Surplus

question 74

Multiple Choice

A current account surplus

• A) poses a problem if domestic savings are being invested more profitably abroad than they would be at home.
• B) may pose no problem if domestic savings are being invested more profitably abroad than they would be at home.
• C) may pose no problem if domestic savings are being invested less profitably abroad than they would be at home.
• D) There is no relation between current account surplus and between savings and investment.
• E) poses a problem if domestic savings are being invested less profitably abroad than they would be at home.

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