Current account deficit are offset by?
Answers
Answered by
0
Answer:
As the value of its currency declines, the value of the foreign assets rise. That further reduces the current account deficit. In addition, a lower currency value increases exports as they become more competitively priced. The demand for imports falls once prices rise as inflation sets in.
Answered by
0
Answer:
Understanding a Current Account Deficit
A country can reduce its existing debt by increasing the value of its exports relative to the value of imports.
Similar questions