Q. Which of the following is true with respect to the monetary approach to the balance ofpayments? (Solved)
1. it views the balance of payments as an essentially monetary phenomenon
2. a balance of payments deficit results from an excess demand of money in the nation
3. a balance of payments surplus results from an excess supply of money
4. balance of payments disequilibrium are not automatically corrected in the long run
- a. it views the balance of payments as an essentially monetary phenomenon