Explain why current account deficits can be beneficial

Reference no: EM133300625

Question 1: Odious debt is defined as debt incurred without the consent of the citizens of the nation and is spent in ways that do not benefit them. Use an example of low-income country to describe the political power cost of large capital flows into it. (7.5 marks)

Question 2: A current account deficit indicates that country imports more goods and services than it exports overseas. Explain why current account deficits can be beneficial or harmful to a country. Provide an example.

Reference no: EM133300625

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