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What does the balance of payments measure?
  • a)
    The balance of trade between two specific countries.
  • b)
    The difference between a country's total income and total expenditures.
  • c)
    The balance between domestic and international production.
  • d)
    The balance between government spending and taxation.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What does the balance of payments measure?a)The balance of trade betwe...
The balance of payments measures the difference between a country's total income and total expenditures over a period of time. It includes not only the balance of trade but also other financial flows such as foreign investment, tourism, and foreign aid.
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What does the balance of payments measure?a)The balance of trade between two specific countries.b)The difference between a country's total income and total expenditures.c)The balance between domestic and international production.d)The balance between government spending and taxation.Correct answer is option 'B'. Can you explain this answer?
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