In a world with only three countries (A, B and C), if countries A and B have trade surpluses, then which of the following can be said (assume exports and imports are both valued fob)?
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JNU SSS 2021 Question 94: Balance of payments and exchange rates
Answer and worked solution
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Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.
What this question tests
This question is on Balance of payments accounts and the current account, part of Balance of payments and exchange rates in International Economics.
How a country's transactions with the world are recorded.
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Question from the JNU SSS 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.