By external balance, most economists means,
A) avoiding excessive imbalances in international payments.
B) balance between exports and imports.
C) balance between trade account and service account.
D) fixed exchange rate.
E) balance in internal transactions like full employment or stable prices.

Question

Quizplus · Accepted Answer

External balance refers to the avoidance of excessive imbalances in a country's international payments or external accounts. This includes balancing the trade balance (exports and imports) and the capital account (flows of investment into and out of the country). Maintaining external balance is important for ensuring a country's overall economic stability and avoiding financial crises.

By External Balance, Most Economists Means