Use the following terms for this question: (X-M. = Current Account Balance (CI-CO. = Capital Account Balance (FI-FO. = Financial Account Balance (I-S. = Investment-Saving Balance FXB = Reserve Balance BOP = balance of payments GDP = gross domestic product C = consumption I = capital investment spending G = government spending
The static equation for the BOP is:
A. BOP = (X-M. - (CI-CO. - (FI-FO. + FXB
B. BOP = (X-M. + (I-S. + (FI-FO. + FXB
C. BOP = (X-M. + (CI-CO. + (FI-FO. + FXB
D. BOP = GDP - [C + I +G] + (FI-FO.