In the context of current account balance dynamics, if an increase in exports leads to a current account surplus, then an increase in imports is to a current account deficit as: A. Decrease in exports is to current account surplus B. Increase in domestic production is to current account surplus C. Decrease in net exports is to current account deficit D. Increase in foreign investment is to current account surplus

In the context of current account balance dynamics, when an increase in imports occurs, it can lead to a current account deficit, which means the country is spending more on foreign goods than it earns from selling its goods abroad. This situation is similar to how a decrease in net exports, which is the difference between exports and imports, also leads to a current account deficit. For example, if a country exports $100 worth of goods but imports $120, it has a net export of -$20, causing a deficit. Therefore, the correct analogy is that an increase in imports is to a current account deficit as a decrease in net exports is to a current account deficit. This shows how both scenarios result in the country spending more on foreign trade than it earns.