Economics Aggregate Demand And Supply Questions
The concept of the capital account balance refers to the measurement of the inflows and outflows of capital in a country over a specific period of time. It includes transactions related to investments, loans, and other financial flows between a country and the rest of the world. A positive capital account balance indicates that the country is receiving more capital inflows than outflows, while a negative balance suggests the opposite. The capital account balance is an important component of a country's balance of payments and reflects the financial strength and attractiveness of the country to foreign investors.