Question: Suppose a country has persistent current account surplus. Which one of the following would cause country's currency to depreciate? A. A massive capital inflow into

Suppose a country has persistent current account surplus. Which one of the following would cause country's currency to depreciate?

A. A massive capital inflow into the country because its economic prospects looks better than other countries.

B. Net financial and capital account deficit that is smaller than country's current account surplus

C. Net financial and capital account deficit that is larger than country's current account surplus

D. Net financial and capital account surplus that is smaller than country's current account surplus

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