Final answer:
To support a current account deficit in the long-run, a country must foster the growth of its exports, possibly with the help of its currency depreciating, and improve internal economic policies to stimulate domestic production and savings.
Step-by-step explanation:
The only way a country can support a current account deficit in the long-run is to ensure that its exports grow more rapidly than imports, which may be assisted by the depreciation of its currency.
A current account deficit, or trade deficit, means that a nation's imports exceed its exports. To sustain this situation, other countries must finance the deficit through loans or investments, expecting that the deficit will eventually turn into a surplus. For this transition to happen, the country would need to increase its exports and/or decrease its imports, potentially aided by a weaker currency that makes exports cheaper and imports more expensive.
Additionally, addressing some internal economic policies, such as improving domestic capital markets or incentivizing domestic savings, could also help reduce a current account deficit over time. For example, by lifting restrictions on domestic investment abroad and making it easier for entrepreneurs to access capital, a country can potentially boost domestic production and reduce reliance on imports.