An improvement in a country's balance of payments means a decrease in its balance of payments deficit,or an increase in its surplus.In fact we know that a surplus in a balance of payments
A)is always harmful.
B)is never harmful.
C)is always beneficial.
D)is usually beneficial.
E)is sometimes harmful.

Question

Quizplus · Accepted Answer

A surplus in a balance of payments can sometimes be harmful as it may indicate an undervalued currency, leading to trade tensions, or it might reflect an imbalance that could cause inflation or other economic issues.

An Improvement in a Country's Balance of Payments Means a Decrease