Which Approach to Balance-Of-Payments Adjustment Suggests That Balance-Of-Payments Surpluses Are

question 8

Multiple Choice

Which approach to balance-of-payments adjustment suggests that balance-of-payments surpluses are the result of excess money demand in the home country?

• A) Absorption approach
• B) Elasticities approach
• C) Monetary approach
• D) Purchasing-power-parity approach

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