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Open Economy Macroeconomics — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsOpen Economy Macroeconomics3 Marks
Question
Distinguish between balance of trade and balance on current account.
✓

Answer

Exports of goods less imports of goods refers to balance of trade. Adding excess of inflows over the outflows on account of invisibles to the balance of trade is called balance on current account.

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