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in Open Economy Macroeconomics by (25.6k points)
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Distinguish between autonomous and accommodating transactions?

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International economic transactions are called autonomous when transactions are made independently of the state of the BOP. These items are called above the line.

On the other hand, accommodating transactions are determined by the net consequences of the autonomous items, that is whether the BOP is in surplus or deficit. These items are called ‘below the line.

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