Question
Which following statement is NOT true? (a) Under a fixed exchange rate system, the government bears the responsibility to ensure that the BOP is near
Which following statement is NOT true?
(a) Under a fixed exchange rate system, the government bears the responsibility to ensure that the BOP is near zero
(b) It is beginning to appear that the favorable inflow on the financial account is diminishing while the current account balance is worsening making the U.S. a bigger debtor nation vis--vis the rest of the world
(c) It is incorrect to state that the BOP is in disequilibrium
d) A nations balance of payments interacts with nearly all of its key macroeconomic variables, such as Gross Domestic Product (GDP), The exchange rate, Interest rates, and Inflation rates
(e) The BOP is a balance sheet, it add up the value of all assets and liabilities of a country on a specific date (as an individual firms balance sheet would do)
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