Which of the following is the only way to support a current account deficit in the long run?
A)Borrowing from the IMF
B)Selling assets to foreigners
C)Divesting stock in domestic corporations
D)Purchasing stocks, bonds, and real estate in other countries
E)Issuing negotiable instruments like the bills of exchange

Question

Quizplus · Accepted Answer

Governments typically prefer to see a current account surplus rather than a deficit. The only way in which a current account deficit can be supported in the long run is by selling assets to foreigners.

Which of the Following Is the Only Way to Support