More important than he 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)Nothing is more important than he absolute size of a country's balance-of-payments disequilibrium.

Question

Quizplus · Accepted Answer

The nature and cause of the balance-of-payments disequilibrium can give insight into the potential effects it may have on the country's economy and its trading partners. For example, a deficit caused by excessive consumption may have different consequences than a deficit caused by inadequate investment in production capacity. Therefore, understanding the nature and cause is crucial in developing appropriate policy responses.

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