Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(06.01 LC) What does a deficit in capital account reflect for a domestic country in the international market? (1 point) A deficit in capital account
(06.01 LC) What does a deficit in capital account reflect for a domestic country in the international market? (1 point) A deficit in capital account shows that more money is coming into the country when compared to what it is spending. A deficit in capital account shows that more money is flowing out of the country when compared to what it is receiving. A deficit in capital account shows the net deficit in the country's balance of payment irrespective of the current account performance. The capital account is always balanced, so there can never be an economic condition that will create a deficit. The deficit in the capital account pertains to more investment from the rest of the world than it does to the domestic country
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started