In an open economy, the current account balance equals ________. (Assume that the capital account is zero) Question 15 options: A) positive financial account balance B) negative financial account balance C) zero D) a sum of net exports and financial capital
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The balance of payments consists of the current account and the financial account. The current account includes transactions related to exports and imports of goods and services, and net income from abroad. The financial account records the net flow of financial Show more…
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