The Balance on the Current Account Is

question 46

Multiple Choice

The balance on the current account is:

• A)real GNP less net foreign investment income.
• B)real GNP less net foreign investment.
• C)real GNP less the net international investment position.
• D)real GNP less real domestic expenditure.

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the net trade of goods and services with foreign countries.

Price Level

The price level is an index that measures the average prices of goods and services across an economy, indicative of inflation or deflation.

Aggregate Demand Curve

A curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level.

Marginal Propensity

The additional amount that consumers are likely to spend out of an additional unit of income.