Discuss:
a. The balance of payments is a measure of a country's accounting cash flow while the current account is a measure of a country's financial cash flow.
b. In recent years, the United States has had a negative financial cash flow while China has had both a positive financial and accounting cash flow. The opposing balances are related.
c. We should not worry about cash flows for either China or the United States since a country is not a company and having too much or too little cash flow is not important.

Question

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The Answer of Discuss:
a. The balance of payments is a measure of a country's accounting cash flow while the current account is a measure of a country's financial cash flow.
b. In recent years, the United States has had a negative financial cash flow while China has had both a positive financial and accounting cash flow. The opposing balances are related.
c. We should not worry about cash flows for either China or the United States since a country is not a company and having too much or too little cash flow is not important.

Discuss: A. the Balance of Payments Is a Measure of a a Country's