a-country-has-a-trade-deficit-positive-net-investment-income-and-negative-net-tr

Question

A country has a trade deficit, positive net investment income, and negative net transfers. What is the likely impact on its current account balance?

Accepted Answer

The current account balance is likely negative due to the trade deficit.

Answer

The current account balance is likely positive due to positive net investment income.

Answer

The current account balance is likely positive due to negative net transfers.

Answer

The current account balance is unaffected by these components.