Question: Which statement is the most accurate? a) Since our current account deficit is matched by our capital account surplus, we have no problem with respect

Which statement is the most accurate?

a) Since our current account deficit is matched by our capital account surplus, we have no problem with respect to our international transactions.

b) Foreigners invest all the dollars they receive from our capital account deficit to buy American assets.

c) Our current account deficits are declining and should disappear before the year 2020.

d) A declining dollar makes foreign investment in dollar-denominated assets much less attractive to foreigners.

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ANSWER The most accurate statement is d A declining dollar makes foreign investment in dollardenomin... View full answer

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