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    Economics-Macroeconomics
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    Exam 9: The Exchange Rate and the Balance of Payments
  5. Question
    "If the Official Settlements Balance Is Zero, a Current Account
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"If the Official Settlements Balance Is Zero, a Current Account

Question 436

Question 436

Essay

"If the official settlements balance is zero, a current account surplus must equal the capital account deficit." Is the previous statement correct or incorrect? Briefly explain your answer.

Correct Answer:

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The statement is correct. The sum of the...

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