Which of the Following Must Be True Under the Flexible

question 19

Multiple Choice

Which of the following must be true under the flexible exchange rate regime:

• A) BRA = BKA
• B) Export = Import
• C) A Current Account deficit (surplus) must be matched by a Capital Account deficit (surplus).
• D) A Current Account surplus (deficit) must be matched by a Capital Account deficit (surplus).

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Definitions:

Effective Capacity

The maximum output level a facility can reasonably sustain under normal operating conditions.

Actual Output

The real quantity of goods or services produced by a company or a production process, as opposed to planned or theoretical output.

Analysis

The process of examining data or details in order to understand or explain them, typically used to solve problems or make decisions.

Costs Equals Revenues

This refers to a break-even point where the amount of money a company makes from selling goods or services equals the amount it costs to produce them.