Differentiate Between the Current Account Balance and the Capital Account

question 65

Essay

Differentiate between the current account balance and the capital account balance.

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Definitions:

Per Capita GDPs

The average economic output per person, calculated by dividing the Gross Domestic Product of a country by its total population.

Less Developed Countries

Nations with low levels of economic resources, industrialization, and Human Development Index ratings compared to other countries.

Economic Development

The progress in economic and social well-being including higher income, improved standards of living, and reduction of poverty.

Military Spending

Government expenditure on the military and defense sector, including salaries, hardware, operations, and maintenance.