Which of the following shows that any trade transaction must have a financial counterpart?
A) NCO = NX
B) NCO + I = NX
C) NX + NCO = Y
D) Y = NCO - I

Name: Which of the following shows that any trade transaction must have a financial counterpart? A) NCO = NX B) NCO + I = NX C) NX + NCO = Y D) Y = NCO - I
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Question

Quizplus · Accepted Answer

NCO = NX indicates that the net capital outflow (NCO) equals the net exports (NX), highlighting the financial counterpart of trade transactions in an economy.

Which of the Following Shows That Any Trade Transaction Must