A small open economy has a current account balance of zero. A rise in the world real interest rate causes
A) a current account surplus.
B) a financial account surplus.
C) net borrowing from abroad.
D) absorption to exceed income.
A
Economics
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What will be an ideal response?
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The Lost Decade began in 1990 when Colombia announced that it lacked the international reserves it needed to pay the interest and principle due on its foreign debt
Indicate whether the statement is true or false
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