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Balance of payments- suppose the United States ran a surplus in its balance on goods and services by exporting goods and services while importing nothing.
A. How would such a surplus be offset elsewhere in the balance-of-payments accounts?
B. If the level of U.S. production does not depend on the balance on goods and services, how would running this surplus affect our current standard of living.
C. What is the relationship between total debits and total credits in the balance on goods and services?
D. When all international economic transactions are considered, what must be true about the sum of debits and credits?
E. What is the role of the statistical discrepancy?
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