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Explain Why the Current Account Balance and the Capital Account

question 46

Essay

Explain why the current account balance and the capital account balance of an economy must sum to zero.


Definitions:

Extroverts

Individuals who are outgoing, social, and derive energy from interactions with other people.

Introverts

Individuals who prefer minimally stimulating environments and tend to recharge by spending time alone.

Contradiction

A situation or statement in which two or more things are opposed to each other or are mutually exclusive.

Radar Machine

A device that uses electromagnetic waves to detect the position, velocity, and other characteristics of distant objects, commonly used in navigation and weather forecasting.

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