A country is recording a growing trade deficit while, at the same time, its current account is in surplus. Which mix of events could account for this?
- AEvent 1: Gross National Income (GNI) rises faster than Gross Domestic Product (GDP); Event 2: a global recession resulting in decreased prices of commodities
- BEvent 1: increased donations received from abroad to combat a humanitarian crisis; Event 2: increased subsidies for exporters
- CEvent 1: removal of restrictions on the remittance of profits of foreign-owned producers; Event 2: removal of restrictions on imports
- DEvent 1: increased secondary income from workers’ remittances from abroad; Event 2: rising imports of machinery to help raise exports in the future