Using the circular flow, Using the Circular Flow, we have

Using the circular flow

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Using the Circular Flow, we have explained why the current account and the financial account balances should sum to zero. For the US, we have seen that the current account balance is usually negative while the financial account balance is positive. Pick a country at any given year and analyze both balances (current account and financial account). - CHINA for instance.

Reference no: EM131170961

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