If devaluation does not improve the BOT, but only the BOP, this implies that
A. the capital account is in deficit.
B. the current account is in surplus.
C. the improvement comes in the capital account.
D. Both B and C.
Answer:C
If devaluation does not improve the BOT, but only the BOP, this implies that
A. the capital account is in deficit. B. the current account is in surplus. C. the improvement comes in the capital account. D. Both B and C.