Question

What affect does balance of payments have if there is a change in fiscal policy?​

Answer 1

Explanation:

If by “fiscal policy,” one means the relationship between government spending and tax revenues, and by “balance of payments,” one means the current account balance (merchandise trade plus net services and investment income), the following is true: more government spending, while holding constant revenues and net.

Answer 2

If by “fiscal policy,” one means the relationship between government spending and tax revenues, and by “balance of payments,” one means the current account balance (merchandise trade plus net services and investment income), the following is true: more government spending, while holding constant revenues and net ...

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