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Discuss the following statement: “It’s true that running a current account deficit for a developing country is a bad thing”
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- discuss the common view that current account deficits are undesirable in a developing countryWhat is more important, a country’s current account balance or GDP growth? Why?Describe three means by which a current account deficit in a developing country is financed. (By "financed," I mean "paid for," "covered" or "balanced" in accounting terms. "Increase exports" or "decrease imports" are not correct answers since they refer to future actions a country may take, not to how a current account deficit is balanced/financed today.)