Current and capital account deficit
Exhibit 3.3 states that in year 1991, the U.S. had current account deficit and consecutively a capital account deficit. Explain about how this may occur?
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In year 1991, U.S. has experienced an overall BOP deficit that should have been accommodated by Federal Reserve’s official reserve action which means decreasing down its reserve holdings.
Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require
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