Question: Many developing countries face a major problem of unsustainable current account deficit: a) What is a Current Account Deficit? b) Discuss the relationship between National

  1. Many developing countries face a major problem of unsustainable current account deficit: 
  2. a) What is a Current Account Deficit? 
  3. b) Discuss the relationship between National Income and Current Account Deficit. 
  4. c) Discuss the relationship between Trade Deficit and Current Account Deficit
  5.  
  6. d) How can the Current Account Deficit be reduced by using FLEXIBLE-PRICE-MODEL Policies?

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