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Unformatted text preview: utilities such electricity and goods. Together goods, services and income provide the essential of what economy needs to function Current transfers are given with nothing to receive after such as workers remittances, donations, aids, and grants. A current account deficit is usually regarded like the account is exhausted because the reserves would be all into their investments. The deficit could also signify increase foreign investment in the local market, in which case the local economy investment income in the future stated Reem Heakal in the article Understanding the Current Account in the Balance of Payments . It may seem odd that an account deficit benefits ones economy, but its true. It makes the economy seem that they are well equipped for whatever fall that may come against them Reference Heakal, Reem. Understanding the Current Account in he Balance of payments . Investopedia.com. htpp://www.investopedia.com/articles/03/061803.asp...
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This note was uploaded on 04/15/2008 for the course ECO 2023 taught by Professor Sabet during the Spring '08 term at FIU.
- Spring '08