Explain why a current account deficit indicates that a, Macroeconomics

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Explain why a current account deficit indicates that a

Problem

1. If the financial account balance must exactly offset the current account balance, why do government accountants bother to record the financial account?

2. Explain why a current account deficit indicates that a country is using more goods and services than it is producing.

3. "Direct foreign investment affects both the financial account and the current account over time." Agree? Disagree? Explain.

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Macroeconomics: Explain why a current account deficit indicates that a

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