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Let’s say a foreign billionaire builds a huge hotel in New York, investment of 2billion dollars. Does this automatically mean that USA's current account deficit will increase by 2billion?

recall:...

When a country has a current account deficit, exchange and interest rate change, and those “funds” come back in the economy either by borrowing or via investment (capital account surplus). What...

Imaginary example: 1 Economy – Two villages – Same currency. Village 1 has current deficit relative to village 2. Does it not run out of cash at some point?