Economics 9708 · AS & A Level · 6.3

6.3 — practice question

If a country manages to attract foreign direct investment in a single year, what effect does this have on its balance of payments in the short run and the long run?

  • Ashort run: a credit in the current account; long run: a debit in the financial account
  • Bshort run: a debit in the current account; long run: a credit in the financial account
  • Cshort run: a credit in the financial account; long run: uncertain in the current account
  • Dshort run: uncertain in the financial account; long run: a credit in the current account

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