An article in the Wall Street Journal noted that New Zealands economy is small and lacks a
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An article in the Wall Street Journal noted that “New Zealand’s economy is small and lacks a substantial domestic savings pool to fund investment, so the country normally runs an annual current-account deficit ranging between 3% and 4% of GDP.” Briefly explain in what sense a current account deficit can provide funds for a country’s investment in factories, machinery, computers, and software.
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