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The Sum of the Balances of the Three Accounts of the Balance

Question 25

Multiple Choice

The sum of the balances of the three accounts of the balance of payments (the current account,the capital and financial account,and the reserve assets account) is


A) negative if there is a balance of trade deficit.
B) positive if there is a balance of trade surplus.
C) equal to zero.
D) negative if there is a balance of trade surplus or positive if there is a balance of trade deficit.
E) positive if there is a balance of trade surplus or negative if there is a balance of trade deficit.

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