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How do net exports impact the current account balance, and what does a negative net export value indicate?
Analyze how changes in global interest rates might affect net investment income in the current account.
A foreign investor earns \$300 in interest from US bonds, while a US investor earns \$400 in dividends from foreign stocks. What is the net investment income?
A country has a trade deficit, positive net investment income, and negative net transfers. What is the likely impact on its current account balance?
What does a negative balance on goods indicate?
Which of the following scenarios describes a trade surplus?
How do foreign aid and remittances affect the net transfers component of the current account?
Why might net exports be larger than net investment income and net transfers in the current account?
Combine the concepts of net exports, net investment income, and net transfers to explain how they collectively determine the current account balance.
What does net investment income in the current account represent?