A country with a persistent trade surplus is being pressured to let its currency appreciate. Which of the following best describes the adjustment that must occur if currency appreciation is to be effective in reducing the trade surplus?
A. Domestic Investment must decline relative to saving.
B. Foreigners must increase investment relative to saving.
C. Global capital flows must shift toward the domestic market.
Answer: C
老师您好!我不理解这道题的答案,trade surplus说明出口大于进口,既然要降低surplus,也就是要少点出口,多点进口才对啊?为何答案是让国外资金多进入到国内呢?没有理解这道题的考点是什么,是在考absorption approach吗?谢谢!