A change in the Canadian balance of payments on financial account generates an equal and opposite reaction in the balance of payments on the current account.

Question

Quizplus · Accepted Answer

According to the accounting identity of the balance of payments, any change in one account must be offset by an equal and opposite change in another account. Therefore, a change in the Canadian balance of payments on financial account will generate an equal and opposite reaction in the balance of payments on the current account.

A Change in the Canadian Balance of Payments on Financial