-The Data in the Table Above Are the U

question 313

Multiple Choice

$\begin{array}{|l|l|}\hline \text { Item } & \text { Billions of dollars } \\\hline \begin{array}{l}\text { Imports of goods and } \\\text { services }\end{array} & 750 \\\hline \begin{array}{l}\text { Exports of goods and } \\\text { services }\end{array} & 1,000 \\\hline \text { Net interest income } & -50 \\\hline \text { Net transfers } & -50 \\\hline \text { US. investment abroad } & -350 \\\hline \begin{array}{l}\text { For eign investment in } \\\text { the United States}\end{array} & 200 \\\hline\end{array}$
-The data in the table above are the U.S. balance of payments. What is the current account balance?

• A) -$150 billion
• B) $150 billion
• C) -$100 billion
• D) $0

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Definitions:

Demand Curve

A visual representation indicating the link between the price of an item and the quantity of it that buyers seek.

Market-determined Price

The price of a good or service as dictated by the forces of supply and demand in a competitive market, without external interventions.

Elastic

Describes a situation in which the demand or supply for a good is sensitive to changes in price.

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.