Use the Following Terms for This Question

question 24

Multiple Choice

Use the following terms for this question:
(X-M) = Current Account Balance
(CI-CO) = Capital Account Balance
(FI-FO) = Financial Account Balance
(I-S) = Investment-Saving Balance
FXB = Reserve Balance
BOP = balance of payments
GDP = gross domestic product
C = consumption
I = capital investment spending
G = government spending
The static equation for the BOP is:

• A) BOP = (X-M) - (CI-CO) - (FI-FO) + FXB
• B) BOP = (X-M) + (I-S) + (FI-FO) + FXB
• C) BOP = (X-M) + (CI-CO) + (FI-FO) + FXB
• D) BOP = GDP - [C + I +G] + (FI-FO)

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Definitions:

Inflections

Variations in the pitch or tone of a person's voice that change the meaning of the words expressed.

Grammar

The collection of formal regulations that dictate how clauses, phrases, and words are arranged within a specific natural language.

Logical Extensions

The process of expanding on an idea, argument, or theory by drawing reasonable conclusions or further implications based on its logic.

Language Shift

The process by which a speech community in a contact situation (such as migration) gradually stops using their original language in favor of another language.