The absorption approach to currency depreciation is represented by which of the following equations?
A) B = Y - A
B) Y = C + I + G + (X-M)
C) I + X = S + M
D) S - I = X - M

Question

Quizplus · Accepted Answer

The absorption approach to currency depreciation is represented by the equation B = Y - A, where B is the balance of payments, Y is national income, and A is domestic absorption.

The Absorption Approach to Currency Depreciation Is Represented by Which