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Capital Account:
The Capital Account presents transfers of money and other capital items and changes in the country's foreign assets and liabilities resulting from the transactions recorded in the current account. The deficit on the current account and on account of capital transactions can be financed by external assistance (loans and grants) drawing from the International Monetary Fund and allocation of the Special Drawing Rights. The BOP accounts provide a link between the increase in gross external debt and the portfolio and spending decisions of the economy. Thus, increase in gross external debt = current account deficit (CAD)
- direct and long-term portfolio capital inflows
+ official reserve increases
+ other private capital outflows
The above equation shows that an increase in external debt can have three broad sources: current account deficits not financed by long-term capital inflows, borrowing to finance a reserve build-up or private outflows of capital.
TC = 1q^3 - 40q^2 + 840q + 1800 Price= $750
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How can we test adulterants in vegetable oils?
Total cost curve (TC) is obtained by adding up vertically total fixed cost and total variable cost curves because the total cost is sum of total fixed cost and total variable cost
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the basic circular flow model suggests that...
What is Economic Depreciation?
Tc and TVC curves have an inverted s-shape
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