Question: When a country has a current account surplus then it is: Multiple Choice lending to foreigners and increasing its net foreign wealth. borrowing from foreigners

When a country has a current account surplus then it is:

Multiple Choice

  • lending to foreigners and increasing its net foreign wealth.

  • borrowing from foreigners and/or reducing its holdings of foreign denominated financial assets.

  • reducing its net foreign wealth.

  • borrowing from foreigners, reducing is holdings of foreign denominated financial assets, and reducing its net foreign wealth.

  • None of the options.

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