Both the ________ do not put a great deal of emphasis on the capital account.
A)absorption and monetary approaches
B)monetary and elasticities approaches
C)elasticities and absorption approaches
D)None of the above

Question

Quizplus · Accepted Answer

The absorption approach focuses on the current account, while the monetary approach focuses on the balance of payments as a whole, with an emphasis on the foreign exchange market. The elasticities approach is concerned with the responsiveness of imports and exports to changes in prices and income levels, but it does not necessarily prioritize the capital account. Therefore, the correct choice is C, which includes both the elasticities and absorption approaches as ones that do not place a significant amount of attention on the capital account.

Both the ________ Do Not Put a Great Deal of Emphasis