question archive Which of the following is true regarding the relationship between international trade and AD?
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Which of the following is true regarding the relationship between international trade and AD?
A. country that exports more than it imports has a trade deficit
B. A country that exports more than 30% of their GDP has a trade surplus
C. A deficit in the current account is offset by a surplus in the financial account
D. A country that exports more than it imports will have a financial account surplus
E. A country with a trade deficit will have a current account surplus
For the above options C is the correct answer.