The balance of payments identity is given by BCA + BKA + BRA = 0. Rearrange the identity for a country with a pure flexible exchange rate regime
A. BCA + BKA + BRA = 0
B. BCA = �CBKA
C. BCA + BKA = �CBRA
D. BRA = �CBCA
Answer:B
The balance of payments identity is given by BCA + BKA + BRA = 0. Rearrange the identity for a country with a pure flexible exchange rate regime
A. BCA + BKA + BRA = 0 B. BCA = �CBKA C. BCA + BKA = �CBRA D. BRA = �CBCA