单选题

A country having a current account deficit most likely will still be able to consume more output than it produces by:

A、 restricting foreign direct investment.
B、 adjusting interest rates to stimulate higher domestic savings.
C、 increasing its net foreign liabilities.

【正确答案】 C

【答案解析】

A current account deficit must be offset by a capital account surplus. Only by borrowing money from foreigners can a country have a current account deficit and consume more output than it produces. An increase in net foreign liabilities is the result of borrowing from foreigners.