Given the size of the statistical discrepancy needed to balance the balance of payments account,one can infer that

Question

Quizplus · Accepted Answer

The size of the statistical discrepancy required to balance the balance of payments account suggests that many international transactions go unrecorded. This is because the statistical discrepancy represents the difference between what is known and what is not known about international transactions. Therefore, it can be inferred that hidden capital flows into the U.S. are not inconsequential, and items in the balance of payments are not necessarily measured accurately.

Given the Size of the Statistical Discrepancy Needed to Balance