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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.

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