International trade and trade policy continues to be an area of political debate. Consider the following statements concerning current account balances. Explain in what sense, if any, the statements are valid. In what sense, if any, are the statements misguided?
a. A current account deficit implies that our nation is giving away money to the rest of the world.
b. A current account deficit indicates that a country has exported jobs to the rest of the world.
c. A current account deficit implies that the nation must have a reduced standard of living in the future.
