AP Macroeconomics Question 214: Answer and Explanation

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Question: 214

8. If a country has a negative value on its current account, then it must

  • A. pay that amount to its trading partners.
  • B. have a positive value of equal magnitude on its capital account.
  • C. depreciate its currency.
  • D. appreciate its currency.
  • E. send gold abroad

Correct Answer: B