Finance their balance of payments deficits

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1. What important differences are there between the ways in which a U.S. balance-of-payments deficit can be financed and the ways in which other countries must finance their balance-ofpayments deficits?

2. If a country imposes capital controls that result in its financial account balance being zero, would it be possible for the country to run a current account deficit? Briefly explain.

Reference no: EM131302954

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