Explain how a current account deficit could reflect

Reference no: EM133711095

Question: Which BEST explains how a current account deficit could reflect valuable investments in the future? The current account deficit falls and businesses are prevented from making valuable investments that could be the foundation of future economic growth. You spend more than your current income on high-quality investments that will boost your future income. An inflow of funding from foreign investors increases the supply of loanable funds, spurring more investment. The deficit possibly reflects strong investment potential and a current need for capital.

Reference no: EM133711095

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