Under a floating exchange rate system with mobile international capital,it is always t that current account
A) deficit + capital account surplus = trade deficit.
B) surplus − capital account surplus = trade deficit.
C) surplus + capital account deficit = 0.
D) surplus − capital account surplus = 0.

Question

Quizplus · Accepted Answer

Under a floating exchange rate system, the current account surplus plus the capital account deficit equals zero, as the balance of payments must balance.

Under a Floating Exchange Rate System with Mobile International Capital,it