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

Question

Quizplus · Accepted Answer

A negative current account balance indicates that the value of imports (goods and services purchased from abroad) exceeds the value of exports (goods and services sold abroad). Net interest and net transfers are components of the current account, but they do not directly indicate the relationship between real GDP and potential GDP, nor do they directly determine the status of the official settlements account.

If the Current Account Balance Is Negative, Net Interest Is