The Monetary Approach to the Balance of Payments

question 9

Multiple Choice

The monetary approach to the balance of payments:

• A)views the balance of payments as an essentially monetary phenomenon
• B)rests on the purchasing power-parity theory
• C)postulates that money plays the crucial role in the long run both as a disturbance and adjustment in the nation's balance of payments
• D)all of the above

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Groupthink

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