If a country with a floating exchange rate has a capital account deficit, which of the following is most likely? O National savings are high relative to investment and net capital inflows are positive O National savings are low relative to investment and net capital inflows are positive O National savings are low relative to investment and net capital inflows are negative O National savings are high relative to investment and net capital inflows are negative

If a country with a floating exchange rate has a capital account deficit, which of the following is most likely? O National savings are high relative to investment and net capital inflows are positive O National savings are low relative to investment and net capital inflows are positive O National savings are low relative to investment and net capital inflows are negative O National savings are high relative to investment and net capital inflows are negative

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 2PA

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