Under a gold standard of the kind analyzed by Hume, describe how balance of payments equilibrium between two countries, A and B, would be restored after a transfer of income from B to A. Is it...

Under a gold standard of the kind analyzed by Hume, describe how balance of payments equilibrium between two countries, A and B, would be restored after a transfer of income from B to A.

Is it possible for an indebted country to continue borrowing, if the capital inflow of a country is not sufficient to cover the current account deficit? What impact does this current account deficit put on its domestic currency?