A country that exports less than it imports will:
A)Have a current account deficit and a capital account deficit
B)Have a current account surplus and a capital account deficit
C)Have a current account surplus and a capital account surplus
D)Have a current account deficit and a capital account surplus

Question

Quizplus · Accepted Answer

This is because when a country exports less than it imports, it will have to pay more for the imports than it receives from exports, resulting in a current account deficit. However, to finance this deficit, the country will need to attract capital from abroad, resulting in a capital account surplus.

A Country That Exports Less Than It Imports Will