An article in the Economist noted, Economies run current-account surpluses when they produce more than they...

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An article in the Economist noted, "Economies run current-account surpluses when they produce more than they consume..... Surplus countries save by buying foreign government bonds." Source: "Why Trade Imbalances Are a Worry During a Global Downturn," Economist, October 8, 2020. Why might you agree with these two statements? A. Current account surpluses require financial account deficits, which is indicated by capital inflows exceeding capital outflows; countries use the current account surplus to buy foreign government bonds. B. Current account surpluses require financial account surplus, which is indicated by capital inflows exceeding capital outflows; countries use the current account surplus to sell foreign government bonds. C. Current account surpluses require financial account deficits, which is indicated by capital outflow exceeding capital inflows; countries use the current account surplus to buy foreign government bonds. D. Current account surpluses require financial account surplus, which is indicated by capital outflow exceeding capital inflows; countries use the current account surplus to buy foreign government bonds. An article in the Economist noted, "Economies run current-account surpluses when they produce more than they consume..... Surplus countries save by buying foreign government bonds." Source: "Why Trade Imbalances Are a Worry During a Global Downturn," Economist, October 8, 2020. Why might you agree with these two statements? A. Current account surpluses require financial account deficits, which is indicated by capital inflows exceeding capital outflows; countries use the current account surplus to buy foreign government bonds. B. Current account surpluses require financial account surplus, which is indicated by capital inflows exceeding capital outflows; countries use the current account surplus to sell foreign government bonds. C. Current account surpluses require financial account deficits, which is indicated by capital outflow exceeding capital inflows; countries use the current account surplus to buy foreign government bonds. D. Current account surpluses require financial account surplus, which is indicated by capital outflow exceeding capital inflows; countries use the current account surplus to buy foreign government bonds.

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