All of the following are credit items in the balance of payments except ?
Correct answer: D. private gives to foreign residents
- A. investment inflows
- B. merchandise exports
- C. payments for American services to foreigners
- D. private gives to foreign residents
Explanation
Merchandise exports, investment inflows, and payments received for services supplied to foreigners are credit items. Private gifts sent to foreign residents are unilateral payments abroad, so they are debits.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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