Describe three means by which a current account deficit in a developing country is financed. (By "financed," I mean "paid for," "covered" or "balanced" in accounting terms. "Increase exports" or "decrease imports" are not correct answers since they refer to future actions a country may take, not to how a current account deficit is balanced/financed today.)

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Describe three means by which a current account
deficit in a developing country
is financed. (By "financed," I mean "paid for," "covered"
or "balanced" in
accounting terms. "Increase exports" or "decrease
imports" are not correct
answers since they refer to future actions a country
may take, not to how a
current account deficit is balanced/financed today.)
Transcribed Image Text:Describe three means by which a current account deficit in a developing country is financed. (By "financed," I mean "paid for," "covered" or "balanced" in accounting terms. "Increase exports" or "decrease imports" are not correct answers since they refer to future actions a country may take, not to how a current account deficit is balanced/financed today.)
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