An accounting identity
A) ensures that all balances will be in equilibrium.
B) is useless in analyzing balance of payments since one cannot tell from the identity whether an equilibrium exists or not.
C) ensures a balance but does not ensure an equilibrium.
D) applies only to plans of economic agents and not to their actual actions.
Correct Answer:
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Q36: A reduction in a country's rate of
Q37: A summary of a country's economic transactions
Q38: When the balance of trade is in
Q39: The balance of trade is
A) the difference
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Q42: In the balance of payments, all of
Q43: An accounting identity is
A) when the balance
Q44: Any transaction that leads to a payment
Q45: In international trade, all payments and gifts
Q46: In the balance of payments, a deficit
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