Explain why the current-account balance and capital-account balance must sum to zero under a pure flexible rate

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Explain why the current-account balance and capital-account balance must sum to zero under a pure flexible rate system.

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Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 08, 2023 01:19 AM

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Explain why the current-account balance and capital-account balance must sum to zero under a pure flexible rate

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Under a flexible exchange rate system a deficit on current accou...View the full answer

Macroeconomics Private And Public Choice

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