The burden of a current account deficit would be the least if a nation uses what it borrows to finance:

Related MCQs

• An increase in the current account deficit will place _______ pressure on the home currency value, other things equal.
• When a country realizes a deficit on its current account:
• Reducing a current account deficit requires a country to:
• Reducing a current account deficit requires a country to:
• An increase in the current account deficit will place _______ pressure on the home currency value, other things equal.
• Which of the following would likely have the least direct influence on a country's current account?
• Assume a UK firm uses a forward contract to hedge all of its translation exposure. Also assume that the firm underestimated what its foreign earnings would be. Assume that the foreign currency depreciated over the year. The firm would generate a translation _______, which would be _______ than the gain generated by the forward contract.
• The current system of international finance is a
• If a foreign country follows the "Purchase Homemade Products" philosophy, the least effective strategy would be for a UK firm to:
• The primary component of the current account is the: