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Why would a country want to avoid an excessively large current account surplus? It causes a decrease in net foreign assets It results in too

  1. Why would a country want to avoid an excessively large current account surplus?
    1. It causes a decrease in net foreign assets
    2. It results in too much foreign direct investment (FDI), which gives foreign companies and countries control over domestic capital
    3. It leads to contractionary monetary policy and higher interest rates, which decreases aggregate demand and can cause a short-run decrease in output
    4. It implies that domestic consumption is too high, and people are living beyond their means
    5. none of the above

While I just want to know why C is wrong, thanks.

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