Autonomous and accommodating transaction
You might have come across this topic a N number of times but might not be knowing what exactly it is? The balance of payments of a country is a systematic account in the form of summarized record of all the economic transactions between residents of a country and non-residents over a given period (normally the BOP covers a period of one year) the account is prepared using the double entry accounting systems with both the debit and credit aspects of each transactions being recorded under different heads within the account which implies that the BOP account always balances (that is basically debit and credit summations are equal).
those importers who are not so favored and must pay black.
first step to determining the difference between autonomous and induced consumption is to look at what each of these terms mean.
economy is the production and consumption activities that determine how scarce resources are allocated in an area.
If the domestic expenditure of the economy is more than the domestic output , then it results in balance of payment deficit .
the difference represents excess of imports over exports .