Relier Pairs Macroeconomics: AccountsVersion en ligne Components of BOP, https://courses.lumenlearning.com/boundless-economics/chapter/capital-flows/ (adapted) par Shaner Adams 1 current account 2 currency equilibrium 3 high interest rate 4 Purchasing power parity 5 Absolute advantage 6 balancing item 7 financial account 8 capital account 9 trade deficit 10 Comparative advantage Produce more output with same resources flow of income (earnings, cash) imports > exports ensures a zero balance transfers not affecting income (debt forgiveness/ rights to resources) supply and demand for currency are equal encourages foreign investment flow of assets (stock/ investments) Country can produce a good with a lower opportunity cost than others Comparing the cost of goods from country to country to equal the same amount
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