When the foreign exchange market is in equilibrium, which of the following will be true?
A) imports + exports = net capital inflow
B) imports − exports = net capital inflow
C) imports − budget deficit = net savings
D) imports + investment = exports + savings

Question

Quizplus · Accepted Answer

In equilibrium, the current account (imports - exports) is equal to the net capital inflow, which is the financial account balance.

When the Foreign Exchange Market Is in Equilibrium, Which of the Following