63 818
Assignments Done
99,5%
Successfully Done
In August 2018

# Answer to Question #63771 in Macroeconomics for extrra

Question #63771
Why cant we use balance of payment in real terms like the amount of goods traded between countries? This would be similar to how aggregate demand is in real terms
Balance of payments is the ratio between payments made economic entities of the one country with the other country, and revenues which derived by them from other countries for a certain period of time (quarter, year). The nature of the balance of payments include two sections: current account balance; balance of capital and financial transactions. Currently is the operation of goods, services, income and current transfers. Thats why we cant use balance of payment in real terms like the amount of goods traded between countries, because the amount of goods traded between countries is only the part of balance of payment and the amount of goods doesn`t comprise fully of balance of payment.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!