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What must offset a current account deficit in the overall balance of payments?
A
A financial account surplus or other matching inflow of funds, so the overall balance remains zero.
B
A financial account deficit or other matching outflow of funds, so the overall balance remains zero.
C
A current account surplus or other matching increase in exports, so the overall balance remains zero.
D
A government budget surplus or other matching reduction in spending, so the overall balance remains zero.
Card 1 of 24
4.1.7 Balance of payments Flashcards
24 flashcards on Edexcel A A Level Economics 4.1.7 Balance of payments: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.