The correct calculation for the current account is given by ________.

Question

Quizplus · Accepted Answer

The current account measures the balance of trade, net factor income (income from foreign investments), and net transfers (transfers of money or goods from one country to another). The correct calculation for the current account is Net exports + Net factor payments from abroad + Net transfers from abroad, which is given by option C. Option A includes domestic transfers instead of transfers from abroad. Option B includes domestic factor payments instead of factor payments from abroad. Option D includes transfers from abroad but has domestic factor payments instead of factor payments from abroad.

The Correct Calculation for the Current Account Is Given by ________