When economists talk about a balance of payments "deficit," they refer to:
A) a net balance in the balance of payments that is less than zero.
B) a condition in which total credits exceed total debits in the balance of payments.
C) a deficit in one of the sub-accounts of the balance of payments.
D) a disequilibrium in the foreign exchange market.
E) a net loss in the trade of international goods and services.

Question

Quizplus · Accepted Answer

A balance of payments "deficit" typically refers to a deficit in one of the sub-accounts, such as the current account or the capital account, rather than the entire balance of payments, which always balances.

When Economists Talk About a Balance of Payments "Deficit," They