Under a Floating Exchange Rate System with Mobile International Capital

question 114

Multiple Choice

Under a floating exchange rate system with mobile international capital, it is always true that current account

• A)deficit + capital account surplus = trade deficit.
• B)surplus − capital account surplus = trade deficit.
• C)surplus + capital account deficit = 0.
• D)surplus − capital account surplus = 0.

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Definitions:

Relational Cohesion Theory

A theoretical framework that explains how relationship quality and trust are developed in groups and organizations, focusing on the cohesion among members.

Strong Relationships

Bonds characterized by mutual respect, trust, and affection, often marked by effective communication and the willingness to support each other in various circumstances.

Behavioral Synchrony

The phenomenon where individuals in a group mirror each other's actions or emotions, often leading to increased cohesion and empathy.

Collective Cohesion

The sense of solidarity, unity, and commitment among members of a group, which strengthens their willingness to work together towards common goals.