The current account balance is equal to
A. Trade balance + services balance + capital account balance.
B. Total payments made by residents of the United States to foreigners plus total payments made by foreigners to residents of the United States.
C. Trade balance + unilateral transfers + net investment income.
D. Trade balance + services balance - capital account balance.
Answer: C
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The more consumer surplus is generated in a market dominated by a single monopoly, the more efficient the outcome.
Answer the following statement true (T) or false (F)
An expansion of the production possibilities frontier is
A) called economic growth. B) proof that scarcity is not a binding constraint. C) a free gift of nature. D) something that has occurred only rarely in history.
Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
A) the price and marginal private benefit B) the economically efficient output C) the price and the marginal social benefit D) the size of the deadweight loss
Exit from a market will occur if economic profits are zero
Indicate whether the statement is true or false