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Posted: June 15th, 2022
Suppose that one year a country had a balance of trade deficit
Suppose that one year a country had a balance of trade deficit. Suppose additionally that the balance for wages, funding revenue and present transfers was zero. Then which of the next statements isfalse?a)Borrowing from overseas will need to have been equal to the trade deficit.b)Both funding will need to have exceeded saving, or authorities spending exceeded taxes (internet of transfers and subsidies), or each.c)The country’s debt to international international locations will need to have grown as a proportion of GDP.d) There will need to have been a surplus on the capital and financing account.
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