By External Balance, Most Economists Mean

question 28

Multiple Choice

By external balance, most economists mean

• A) avoiding excessive imbalances in international payments.
• B) balance between exports and imports.
• C) balance between the trade and service accounts.
• D) what amounts to fixed exchange rates.
• E) imbalance in internal transactions.

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Definitions:

Net Income

The amount of profit remaining after all expenses, taxes, and costs have been subtracted from total revenues.

Units-of-production Method

A method of depreciation that allocates the cost of an asset based on its usage, production, or units of activity rather than the passage of time.

Passage of Time

Refers to the progression of time and its implications, often related to depreciation, amortization, and other time-sensitive accounting practices.