3149EconomicsMedium
A capital account surplus might be expected to cause a current account deficit because the associated?
Acapital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
Bcapital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
Ccapital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
Dcapital outflow would cause the nation’s currency to appreciate contributing to a trade deficit
Correct answer
B. capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
Explanation
The correct answer is capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit.