If the United States imports goods and services for a total of $45 billion, exports goods and services for a total of $40 billion, records $4 billion as net interest and zero as net transfers, then the U.S.current account balance is

Question

Quizplus · Accepted Answer

Current account balance can be calculated as follows:
Current Account Balance = Balance of Trade (Exports - Imports) + Net Income (Net Interest) + Net Transfers
= ($40 billion - $45 billion) + $4 billion + 0
= -$1 billion
Therefore, the correct answer is option D, $1 billion in deficit.

If the United States Imports Goods and Services for a Total