Question

WheWhen, in the absence of exchange rate adjustments, there is a balance of payments deficit, this is known as a(n)
Select one:
a. incipient balance of payments deficit.
b. balance of payments depreciation.
c. balance of payments appreciation.
d. incipient balance of payments surplus.
Nextn, in the absence of exchange rate adjustments, there is a balance of payments deficit, this is known as a(n)

Answer 1

When, in the absence of exchange rate adjustments, there is a balance of payments deficit, this is known as an incipient balance of payments deficit.
So, the right answer is a. incipient balance of payments deficit.