If the current account is in surplus and the capital account is zero, then the financial account must be in deficit. the trade balance must be in deficit. the balance of payments must be in deficit. there is a capital inflow.

If the current account is in surplus and the capital account is zero, then the financial account must be in deficit. the trade balance must be in deficit. the balance of payments must be in deficit. there is a capital inflow.

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 6DQ

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