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New Zealand has a current account deficit. If the government of New Zealand were to pursue a policy of having a balanced current account then

New Zealand has a current account deficit. If the government of New Zealand were to pursue a policy of having a balanced current account then

Select one:

a.

net foreign income (NFI) would increase due to an rise in exports and a drop in imports.

b.

New Zealand savings (S) would fall.

c.

New Zealand investment (I) would have to remain unchanged.

d.

New Zealand savings (S) would have to rise or investment (I) would fall.

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