MCQOPTIONS
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| 1. |
In an economy's Balance of Payments account, |
| A. | the capital and current accounts must add to 1 |
| B. | the current account is always greater than the capital account |
| C. | both the balance on current account and the balance on capital account are zero |
| D. | the capital plus current account balances must equal zero |
| E. | capital outflows must equal capital inflows |
| Answer» E. capital outflows must equal capital inflows | |