Question

question 9 (1 point) saved listen if canada is running a deficit in its current account, this means... a) the nation is also running a deficit in its capital account b) the nation is not benefiting from trade c) the balance of payments is in a state of disequilibrium d) the nation must be running a surplus in its capital account previous page next page page 9 of 10

Explanation:

The balance - of - payments identity states that the sum of the current account balance and the capital account balance equals zero. So, if there is a current - account deficit, there must be a capital - account surplus to offset it and keep the balance of payments in equilibrium.

Answer:

D. the nation must be running a surplus in its capital account