This question is based on the following information: Government spending = 160 Taxes = 100 Exports = 160 Imports = 100 Capital inflows = 130 Capital outflows = 200 Which one of the following statements is correct? Select one: A. A trade surplus of 60 occurs. B. A budget surplus of 60 occurs. C. Government spending and taxes form part of the "Current account" of the balance of payments. D. The financial account surplus is equal to 70.
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In this case, it is 160 - 100 = 60. So, there is a trade surplus of 60. Therefore, option A is correct. Show more…
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