The difference between the balance on current account and the balance on capital account is the ?
Correct answer: A. statistical discrepancy
- A. statistical discrepancy
- B. balance of payments
- C. balance of trade
- D. trade deficit
Explanation
When the current-account and capital-account balances do not exactly offset, the balancing entry is called the statistical discrepancy. It captures errors and omissions in recording international transactions.
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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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