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Use the following terms for this question: (X-M) = Current Account Balance (CI - CO) = Capital Account Balance (FI-FO) = Financial Account Balance (I-S)
Use the following terms for this question: (X-M) = Current Account Balance (CI - CO) = Capital Account Balance (FI-FO) = Financial Account Balance (I-S) = Investment - Saving Balance FXB = Reserve Balance BOP = balance of payments GDP = gross domestic product C = consumption | = capital investment spending G = government spending The static equation for the BOP is: O A. BOP = (X-M) - (CI - CO) - (FI FO) + FXB OB. BOP = (X-M) + (CI-CO) + (FL FO) + FXB O C. BOP = GDP [C + I +G] + (FI - FO) OD. BOP = (X-M) + (1 - 5) + (FL FO) + FXB
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