The monetary approach to the balance of payments:
A)views the balance of payments as an essentially monetary phenomenon
B)rests on the purchasing power-parity theory
C)postulates that money plays the crucial role in the long run both as a disturbance and adjustment in the nation's balance of payments
D)all of the above

Question

Quizplus · Accepted Answer

The monetary approach to the balance of payments views it as a monetary phenomenon, relies on the purchasing power-parity theory, and emphasizes the role of money in both causing and adjusting balance of payments issues over the long term.

The Monetary Approach to the Balance of Payments