If a country has a current account deficit, which of the following must be true?
(a) It must also show a deficit in its capital account
(b) It must show a surplus in its capital account
(c) It must increase the purchases of foreign goods and services
(d) It must increase the domestic interest rates of its bonds
(e) It must limit the flow of foreign capital investment
Ans: (b) It must show a surplus in its capital account
Economics