How do we allocate statistical discrepancy among the current, capital, and financial accounts?
A) We have no way of knowing exactly how to allocate this discrepancy.
B) Depend on the degree of certainty by which we attribute to these accounts.
C) Divide it evenly amongst the three accounts.
D) Depend on the convention adopted by the specific financial institution.
E) Statistical discrepancy signals human errors made when dealing with financial accounts.
A
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If the MPC increase, the equilibrium levels of income and consumption will change in which of the following ways?
A) No change/No change B) No change/Increase C) Increase/No change D) Increase/Increase E) Decrease/Decrease
The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of
A) irrational behavior. B) a credit market imperfection. C) a vast banking conspiracy. D) the burden of public debt.