When the balance of trade is in balance,then

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When the balance of trade is in balance, the value of exports equals the value of imports. This means that there is neither a surplus nor a deficit in the balance of trade. Options A, C, and D are incorrect. Option A relates to capital flows, which is not necessarily equal to the balance of trade. Option C is incorrect as the accounting identity holds regardless of the balance of trade. Option D implies that there are no net payments, which may not be true when the balance of trade is in balance.

When the Balance of Trade Is in Balance,then