Multiple Choice
The sum of the balances of the three accounts of the balance of payments (the current account, the capital account, and the official settlements account) is
A) negative if there is a balance of trade deficit.
B) equal to zero.
C) positive if there is a balance of trade surplus.
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.
Correct Answer:
Verified
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