How does a trade deficit in the current account relate to the financial account?
Balance of Payments (BOP) Accounts- Macro 6.1
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Business, Social Studies
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11th Grade - University
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Hard
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Mr. Clifford explains the balance of payments, focusing on the current and financial accounts. Using the U.S. and China as examples, he illustrates trade deficits and surpluses, and how these affect the financial account. The video concludes with a graph showing the relationship between current account deficits and financial account surpluses.
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2 questions
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1.
OPEN ENDED QUESTION
3 mins • 1 pt
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2.
OPEN ENDED QUESTION
3 mins • 1 pt
What happens to the financial account when China has a current account surplus?
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