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An editorial in the Wall Street Journal in 2017 makes the following observation: "When the US has a current account deficit it has to have a capital-account surplus of the same amount" Source: "How to Think About the Trade Deficit," Wall Street Journal, March 10, 2017. Briefly explain whether you agree with this observation OA Agree, because the United States must have a capital account surplus of the same size B. Disagree, because the observation confuses the capital account with the financial account OC. Disagree, because the current account and the capital account are unrelated OD. Disagree, because the United States must have a capital account deficit of the same size

An editorial in the Wall Street Journal in 2017 makes the following observation: "When the US has a current account deficit it has to have a capital-account surplus of the same amount" Source: "How to Think About the Trade Deficit," Wall Street Journal, March 10, 2017. Briefly explain whether you agree with this observation OA Agree, because the United States must have a capital account surplus of the same size B. Disagree, because the observation confuses the capital account with the financial account OC. Disagree, because the current account and the capital account are unrelated OD. Disagree, because the United States must have a capital account deficit of the same size

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 44P: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit...
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An editorial in the Wall Street Journal in 2017 makes the following observation: "When the US has a current-account deficit it has to have a capital-account surplus of the same amount." Source: "How to Think About the Trade Deficit," Wall Street Journal, March 10, 2017. Briefly explain whether you agree with this observation OA Agree, because the United States must have a capital account surplus of the same size B. Disagree, because the observation confuses the capital account with the financial account OC. Disagree, because the current account and the capital account are unrelated OD. Disagree, because the United States must have a capital account deficit of the same size.
Transcribed Image Text:An editorial in the Wall Street Journal in 2017 makes the following observation: "When the US has a current-account deficit it has to have a capital-account surplus of the same amount." Source: "How to Think About the Trade Deficit," Wall Street Journal, March 10, 2017. Briefly explain whether you agree with this observation OA Agree, because the United States must have a capital account surplus of the same size B. Disagree, because the observation confuses the capital account with the financial account OC. Disagree, because the current account and the capital account are unrelated OD. Disagree, because the United States must have a capital account deficit of the same size.
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