If the Current Account Balance Is Negative, Net Interest Is

question 158

Multiple Choice

If the current account balance is negative, net interest is $100 billion and net transfer is -$100 billion, then

• A) imports exceed exports.
• B) exports exceed imports.
• C) real GDP exceeds potential GDP.
• D) the official settlements account must be positive.
• E) the official settlements account must be negative.

---

Definitions:

Foreign Threats

Challenges or dangers originating from outside a country's borders that can impact national security or interests.

Embargo Trade

A governmental ban on trade with a specific country or the exchange of specific goods, often used as a political tool.

White House Staff

Employees and officials who directly assist and support the President of the United States in the daily management of executive branch duties.

Executive Council

A body composed of the executive members of a government or organization, responsible for making decisions and overseeing the administration of policies and strategies.