Which of the following can effectively provide financing for a countrys current account deficit? a. Residents of

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Which of the following can effectively provide financing for a country’s current account deficit?

a. Residents of the country sell foreign government bonds (that they had previously purchased) to residents of the foreign country.

b. Residents of the country receive dividends and interest on their portfolio investments in foreign stocks and bonds.

c. Foreign residents purchase newly issued equity in a number of the country’s start-up companies.

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