If the Current Account Is in Surplus What Must Be

question 13

Essay

If the current account is in surplus what must be true about the capital account? Why?

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Definitions:

Self-enhancement

A type of social behavior or cognitive bias that leads individuals to view themselves in an overly favorable manner for self-promotion.

Predict

To declare or indicate in advance; specifically, to foretell on the basis of observation, experience, or scientific reason.

Declarative Self-knowledge

The aspect of self-awareness that includes understanding one's own beliefs, values, traits, and feelings that can be consciously communicated.

Procedural Self-knowledge

Procedural self-knowledge relates to understanding the processes by which one can achieve specific outcomes, often linked to implicit, tacit knowledge about how to perform certain tasks.