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Open Economy Macroeconomics — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsOpen Economy Macroeconomics1 Mark
Question
How is a deficit or a surplus on the current account restored?
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Answer

Deficit on the current account is restored through the surplus on capital account and surplus on the current account is restored through the deficit on capital account.

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