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Assume that country's balance-of-payments accounts are recorded correctly. If there is no change in a country's official reserves account, a surplus in the capital account

Assume that country's balance-of-payments accounts are recorded correctly. If there is no change in a country's official reserves account, a surplus in the capital account must be:

  • offset by a deficit in the current account.
  • None of the options.
  • reflected in a decrease in a country's foreign indebtedness.
  • offset by a surplus in the current account.
  • reflected in an appreciation of the country's currency.

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