Answer to Question #133192 in Macroeconomics for Valerie

Question

Choose the correct answer
A country’s balance of payments
[1] records all the economic activities which take place within the boundaries of the country.
[2] will show a deficit on the current account if the value of exports exceeds the value of imports.
[3] can afford a deficit on the current account if there is a positive balance on the financial account.
[4] records all the transactions in the rest of world.

Answer 1

3) can afford a deficit on the current account if there is a positive balance on the financial account