Question: Under the fixed exchange rate system: a. Is it possible for a country to have positive balances for both its current account and capital account
Under the fixed exchange rate system:
a. Is it possible for a country to have positive balances for both its current account and capital account at the same time? If so, is the situation sustainable or not? Explain. b. Is it possible for a country to have negative balances for both its current account and capital account at the same time? If so, is the situation sustainable or not? Explain.
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