Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![-How is the balance of payments linked to national
saving and investment? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F624d6aec-a8a8-478e-9081-b8791a02e37b%2F60e982ab-1a73-4c64-81b7-8d1650d75063%2Fw4d2rrd.jpeg&w=3840&q=75)
Transcribed Image Text:-How is the balance of payments linked to national
saving and investment? Explain.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
The method used to monitor all the international transactions of a country, in a given period of time is called the Balance of Payments. It has three main components - Current Account, Capital Account, and Financial Account.
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