A capital account surplus might be expected to cause a current account deficit because the associated ?

Question

TuteeHUB · Accepted Answer

capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit

TuteeHUB · Answer

capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit

TuteeHUB · Answer

capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit

TuteeHUB · Answer

capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit

1.	A capital account surplus might be expected to cause a current account deficit because the associated ?
A.	capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
B.	capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
C.	capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
D.	capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit
Answer» D. capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit

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