Which of the following is true with respect to the monetary approach to the balance of payments ?
A. It views the balance of payments as an essentially monetary phenomenon.
B. A balance of payments deficit results from an excess demand of money in the nation.
C. A balance of payments surplus results from an excess supply of money.
D. Balance of payments disequilibrium are not automatically corrected in the long run.
Answer:A
Which of the following is true with respect to the monetary approach to the balance of payments ?
A. It views the balance of payments as an essentially monetary phenomenon. B. A balance of payments deficit results from an excess demand of money in the nation. C. A balance of payments surplus results from an excess supply of money. D. Balance of payments disequilibrium are not automatically corrected in the long run.