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That's a good question for discussion, however, if the economy is at less than full employment and the marginal propensity to absorb (MPA) is less than unity, then a rise in income will improve the current account (CA). If income were to fall, it would raise the absorption-to-income ratio and thus worsen the CA. It also depends on whether the Marshall-Lerner condition is satisfied where an increase in exports will raise national income. Hope that helps,

Dmitri

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