The balance of payments is zero
A) because each transaction has equal and opposite entries in the accounts.
B) because market forces ensure that this is so.
C) only if the current account balance is zero.
D) only if the capital account balance is zero.
E) if the capital inflows equal capital outflows.
Correct Answer:
Verified
Q51: In the monetary small open-economy model with
Q52: A capital inflow occurs when a
A) domestic
Q53: Research on capital controls in Chile show
Q54: In the monetary small open-economy model,a flexible
Q55: The acquisition of a new physical asset
Q56: A capital outflow occurs when a
A) domestic
Q57: The acquisition of a domestic financial asset
Q58: Capital controls refer to
A) controls placed on
Q59: If a country's central bank seeks to
Q61: Determine the impact of an increase in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents