The most important and volatile component of the current account in the U.S.balance of payments is:

Question

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Net exports, which is the difference between exports and imports, is the most important and volatile component of the current account in the U.S. balance of payments. This is because it is influenced by various factors such as exchange rates, global economic conditions, and domestic policies, and can have a significant impact on the overall balance of payments and the value of the country's currency. Transfer payments, net income on capital held abroad, and foreign direct investment are also important components of the balance of payments, but they are less volatile and do not have as much of an impact on the current account as net exports.

The Most Important and Volatile Component of the Current Account