Can a country simultaneously run a trade balance surplus and a current account d

Question

Can a country simultaneously run a trade balance surplus and a current account de?cit? (a) No, because the trade balance and the current account are always equal. (b) Yes, if imports exceed exports, and the country is a big net creditor that earns large interest income. 1 (c) Yes, if exports exceed imports, and the country is a big net creditor that earns large interest income. (d) Yes, if exports exceed imports, and the country is a big net debtor paying large interest income. (e) Yes, if imports exceed exports, and the country is a big net debtor paying large interest income

Explanation / Answer

(d) Yes, if exports exceed imports, and the country is a big net debtor paying large interest income.

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