More important than the absolute size of a country's balance-of-payments disequilibrium
A)is the nature and cause of the disequilibrium.
B)is whether it is a trade surplus or deficit.
C)is whether the local government is mercantilist or not.
D)is nothing is more important than the absolute size of a country's balance-of-payments disequilibrium.

Question

Quizplus · Accepted Answer

The nature and cause of the balance-of-payments disequilibrium are more important than its absolute size. Understanding the root cause of the imbalance can provide insights into how to fix it, while just focusing on the size does not offer much information.

More Important Than the Absolute Size of a Country's Balance-Of-Payments