Given the Size of the Statistical Discrepancy Needed to Balance

question 83

Multiple Choice

Given the size of the statistical discrepancy needed to balance the balance of payments account,one can infer that

• A) hidden capital flows into the U.S. are inconsequential.
• B) items in the balance of payments are measured quite accurately.
• C) many international transactions go unrecorded.
• D) all of the above occur.

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Definitions:

Skin Effect

The tendency of an alternating electrical current to become distributed within a conductor such that the current density is largest near the surface of the conductor, and decreases with greater depths in the conductor.

Eddy Currents

Circulating currents induced within conductors by a changing magnetic field, often leading to energy loss.

Insulation

Material used to prevent the passage of electricity, heat, or sound from one area or substance to another by providing a barrier or covering.

Embargo Act 1807

A law passed by the U.S. Congress prohibiting American ships from trading in foreign ports, aiming to coerce Britain and France into respecting U.S. neutrality during their wars.