If Devaluation Improves Only the BOP,rather Than the BOT,this Implies

question 26

True/False

If devaluation improves only the BOP,rather than the BOT,this implies that the capital account must have improved following a devaluation.

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Definitions:

Government Transfers

Payments by the government to individuals for which no good or service is provided in return.

Deadweight Loss

Deadweight loss is the decrease in total surplus (both consumer and producer surplus) that occurs when a market is not in perfect competition, typically due to inefficiencies like taxes, subsidies, or monopolies.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Poverty Line

A threshold set by governments to define the minimum income level necessary to afford basic necessities, delineating who is considered to be in poverty.