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Balance of Payments: Current Account
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Balance of Payments: Current Account
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22. Balance of Payments / Balance of Payments: Current Account / Problem 1
Problem 1
How do net exports impact the current account balance, and what does a negative net export value indicate?
A
Net exports contribute to the capital account balance; a negative value indicates a trade deficit.
B
Net exports contribute to the financial account balance; a negative value indicates a trade surplus.
C
Net exports do not affect the current account balance; a negative value indicates a trade surplus.
D
Net exports contribute to the current account balance; a negative value indicates a trade deficit.
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