Question: If every balance-of-payments entry is offset by another (opposite) flow, how is it possible for countries to have balance-of-payments surpluses or deficits? Briefly explain.

If every balance-of-payments entry is offset by another (opposite) flow, how is it possible for countries to have balance-of-payments surpluses or deficits? Briefly explain.

Step by Step Solution

★★★★★

3.47 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

If exchange rates float freely then the balance of payments is zero O... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

779-E-C-E-T-P (872).docx

120 KBs Word File

Students Have Also Explored These Related Chemical Engineering Questions!

Is it possible for the velocity and the acceleration of an object to have opposite signs? If not, state a proof. If so, give an example of such a situation and sketch a velocitytime graph to prove...

Another technique described in Chapter 20 is polymerase chain reaction (PCR) (see Figures 20.5 and 20.6). This method is based on our understanding of DNA replication. In this method, a small amount...

All views expressed in this paper are those of the authors and do not necessarily represent the views of the Hellenic Observatory or the LSE George Alogoskoufis Greeces Sovereign Debt Crisis:...

1.Which of the following is NOT true regarding the subject matter of international finance? A. International finance studies the important trade theories. B. International finance examines the theory...

Hi Katrina, I have another accounting problem I need your help with. It's similar to the one you did on 4/4/2016. The due date for this one will be 4/10/2016, Will you be able to help? See below...

A ... Your friend's birthday is tomorrow. She does not own a watch, yet you know that she would enjoy having one. (a) Draw a budget constraint / indifference curve graph for your friend, with...

I have included the question as a word file. I also added text from the chapter in case it might help. c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162 chapter 4 ACCRUAL ACCOUNTING CONCEPTS...

I've attached the questions as a word file. Thanks! c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162 chapter 4 ACCRUAL ACCOUNTING CONCEPTS the navigator Scan Study Objectives Read Feature...

I've attached the question as a word file, thanks! c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162 chapter 4 ACCRUAL ACCOUNTING CONCEPTS the navigator Scan Study Objectives Read Feature...

A graph of y = f (x) follows. No formula is given for f. Make a hand-drawn graph of each of the following. a. g(x) = -2f (x) b. g(x) = f (2x) . (3, 2): Ko, 2). 5, 0) 4 2 5 3 4

Tell whether each of the following liabilities is definitely determinable or an estimate: accounts payable, unearned revenue, and warranty liability.

3. When you call Function 716Ch to create a file, what arguments are required?

(LO 5) What are the consequences for a company when its inventory turnover ratio is a. too high or b. too low?

Most individuals with average wealth choose to save their money using a financial intermediary such as a bank or a mutual fund. However, individuals with greater wealth are more likely to invest in...

Why would it be better to put $1,000 each year into a retirement account than to wait ten years and put in $10,000 all at once? How much of a difference would it make in the long run?

Why have pensions become a less common form of retirement benefit offered by companies?

Rodi wanted to be a lawyer and practice law in New Jersey. To take the New Jersey bar exam, he had to attend a school accredited by the American Bar Association(ABA). He got a recruitment letter from...

Part 1 In the case of normally distributed classes, discriminant functions are linear (straight lines, planes, and hyperplanes for two-, three-, and n-dimensional feature vectors, respectively) when...

eBook A firm has an opportunity to invest in a new device that will replace two of the firm's older machines. The new device costs $550,000 and requires an additional outlay of $40,000 to cover...