What occurs in the balance of payments account when international payments are greater than receipts?
A) a tariff
B) inflation
C) recession
D) a credit
E) a deficit

Question

Quizplus · Accepted Answer

When international payments are greater than receipts, it results in a deficit in the balance of payments account. This means the country is spending more on foreign trade than it is earning, leading to a negative balance.

What Occurs in the Balance of Payments Account When International