Canada's Balance of Payments Is Sometimes Incorrectly Said to Be

question 32

Multiple Choice

Canada's balance of payments is sometimes incorrectly said to be "in surplus." The reason this must be incorrect is that

• A)Canada's balance of payments has been in deficit for almost all of its history.
• B)unlike most countries,Canada's balance of payments is almost always balanced.
• C)like any other country in the world,Canada's balance of payments is always perfectly balanced.
• D)the Canadian government has long been committed to avoiding balance of payments surpluses.
• E)it is not possible for capital flows to be in a surplus situation.

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