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Balance of Payments: Current Account
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Balance of Payments: Current Account
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21. Open-Economy Macroeconomics / Balance of Payments: Current Account / Problem 8
Problem 8
Why might net exports be larger than net investment income and net transfers in the current account?
A
Net investment income and net transfers are typically larger due to foreign aid.
B
Net exports are smaller because they only include goods.
C
Net transfers are larger due to remittances.
D
Net exports often involve larger monetary transactions due to the scale of international trade.
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