Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance of payments must always balance, because: A.current account deficits automatically generate transfer of assets from foreigners. B.capital account surplus means the outflow of

The balance of payments must always balance, because:

  • A.current account deficits automatically generate transfer of assets from foreigners.
  • B.capital account surplus means the outflow of capital.
  • C.current account surpluses automatically generate transfer of assets to foreigners.
  • D.current account deficits automatically generate transfer of assets to foreigners while current account surpluses automatically generate transfer of assets from foreigners.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles, Problems, & Policies

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

20th Edition

0077660773, 9780077660772

More Books

Students also viewed these Economics questions