BP Curve

BP Curve

A line on a chart indicating the series of interest rates at which a country's balance of payments (that is, the amount of money entering a country less the money leaving it) is at equilibrium. It generally trends upward. It affects the exchange rates of currencies.
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(2) The active variable volume chamber method may design air injecting and releasing pressure curves to discover the characteristics of BP curve in a time-efficient manner.
(1.) A simple explanation for the BP curve's being upward sloping is that as income, y, increases, the trade balance worsens such that for BP = 0, the domestic interest, i, has to be higher to attract capital inflows (or reduce capital outflows).