Question: Consider a situation in which both the current and the capital accounts in the balance of payments of a country are in deficit. Which of

Consider a situation in which both the current and the capital accounts in the balance of payments of a country are in deficit. Which of the following statements is true?

a.

The country's net exports and net capital inflows are both positive

b.

The country's net exports and net capital inflows are both negative

c.

It is not possible for both accounts to have a deficit simultaneously

d.

The country's net exports are positive, whereas net capital inflows are negative

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