Positive Balance of Payments

Question:

"Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Briefly comment on this statement?

Answer:

Balance of payments is a measure of net flow of funds from a country; it consists of both long term and short term flow of funds. A positive BOP reflects that the country is gaining from long term and short term transactions in the world and hence, accumulating wealth. Therefore, if the US has a positive BOP then it means that it is accumulating wealth thereby benefitting the economy in the short run as well as long run.

View Complete Question

Related Questions in Business Economics

Q : Meaning of Modigliani-Miller Briefly

Briefly describe the meaning of Modigliani- Miller (M and M) approach?

Q : Formally adopt inflation targeting

Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment? Answer:

Q : Initial systematic and popular

The initial systematic and popular description of capitalism was explained in: (1) Sir Thomas Mun’s England’s Treasure by Foreign Trade. (2) Joseph A. Schumpeter’s Capitalism, Socialism, and Democracy. (3) John Maynard Keynes’

Q : Explain how Entrepreneurs are

Explain how Entrepreneurs are risk-takers?

Q : Determine the clearest illustration of

The clearest illustration of economic inefficiency would be: (w) maintaining a warehouse full of pet rocks within hopes such that someday the fad will return. (x) pet rocks being unavailable to people willing to pay a price that exceeds the marginal s

Q : Describe the output effects of Inflation

Describe the output effects of Inflation?

Q : Elucidate types of unemployment

Elucidate types of unemployment?

Q : Demand supply Newspaper item: “Due to

Newspaper item: “Due to lower grain prices, consumers can expect retail prices of choice beef to begin dropping slightly this spring with pork becoming cheaper after midsummer,” the Agriculture Department predicted. “This reflects increasing supply,” the department said. Does the statement use th

Q : Describe Quasi-public goods Describe

Describe Quasi-public goods?

Q : Real exchange rate Question: To

Question: To determine the real exchange rate, what two pieces of information do you need in addition to the nominal exchange rate? Answer:

Discover Q & A

Leading Solution Library

Avail More Than 1437083 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1949372
Asked

3,689

Active Tutors

1437083

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment