Balancing the budget is not a primary objective of fiscal policy, as it may conflict with other objectives such as promoting economic growth or reducing unemployment.

The trade balance is the difference between a country's exports and imports.

The fiscal balance is not a component of the current account balance.

A current account deficit occurs when a country's imports exceed its exports.

A current account deficit does not necessarily lead to lower economic growth.

A fiscal deficit occurs when a government's expenditures exceed its revenues.

A fiscal deficit does not necessarily lead to lower economic growth.

Fiscal policy can affect external balance through its impact on the exchange rate, aggregate demand, and the trade balance.

Fiscal policy can be used to improve external balance by reducing the fiscal deficit, increasing government spending, raising taxes, or a combination of these measures.

Using fiscal policy to improve external balance can lead to increased government debt, crowding out of private investment, higher inflation, and lower economic growth.

External equilibrium, external stability, and external balance all refer to a situation where a country's external balance is sustainable.

A sustainable current account deficit is not a necessary condition for external equilibrium.

Achieving external equilibrium can lead to increased economic growth, lower inflation, and reduced risk of financial crisis.

Achieving external equilibrium can be challenging due to the need to balance competing policy objectives, the impact of external shocks, and the political economy of reform.

International cooperation can play a role in achieving external equilibrium by helping to reduce the impact of external shocks, promoting sound fiscal and monetary policies, and facilitating trade and investment.