[Solved] Under a fixed exchange rate system, a contractionary fiscal policy leads to a worsening in a nation’s balance-of-payments position if the resulting:

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Q.	Under a fixed exchange rate system, a contractionary fiscal policy leads to a worsening in a nation’s balance-of-payments position if the resulting:
A.	Trade-account deficit more than offsets the capital-account surplus
B.	Trade-account deficit more than offsets the capital-account deficit
C.	Capital-account deficit more than offsets the trade-account surplus
D.	Capital-account deficit more than offsets the trade-account deficit
Answer» C. Capital-account deficit more than offsets the trade-account surplus

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