is current account deficit a monetary phenomenon?

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is current account deficit a monetary phenomenon?

it is a true or false question

2006-12-04 22:05:40 · 1 answers · asked by damilola a 1 in Social Science ➔ Economics

1 answers

It can be; it can also be structural... Consider a small country that exports a single commodity; a decrease in price of that commodity would immediately increase the current account deficit. The exchange rate regime may play a role as well...

2006-12-05 06:01:23 · answer #1 · answered by NC 7 · 0⤊ 0⤋

Yes, to some extent!

2006-12-05 02:19:45 · answer #2 · answered by Sami V 7 · 0⤊ 0⤋

true

2006-12-05 02:28:55 · answer #3 · answered by sachin n 1 · 0⤊ 1⤋