The European Commission believes that in 2020 exports of goods and services from Spain will be 22 times larger than in 2010. Irish exports are expected to have grown by 15 percent over the same period. If imports remain constant
A) the current account balance in both countries will become more positive.
B) the current account balance in both countries will become more negative.
C) there will be no change in the current account balance of both countries.
D) in both countries the capital and financial account balance will become more positive.

Question

Quizplus · Accepted Answer

An increase in exports, with imports remaining constant, improves a country's current account balance by increasing the net exports. This leads to a more positive current account balance for both Spain and Ireland.

The European Commission Believes That in 2020 Exports of Goods