Can a country have a: a. current-account deficit, capital-account surplus, and f

Question

Can a country have a:

a. current-account deficit, capital-account surplus, and flexible exchange rate? Why or why not?

b. current-account deficit, capital-account deficit, and flexible exchange rate? Why or why not?

c. merchandise trade deficit, capital-account deficit, and flexible exchange rate? Why or why not?

d. current-account surplus, capital-account surplus, and fixed exchange rate? Why or why not?

e. current-account surplus, capital-account surplus, official settlements balance surplus, and fixed exchange rate? Why or why not?

Explanation / Answer

current-account surplus, capital-account surplus, and fixed exchange rat

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