Using the notation defined in this chapter, the current account of the balance of payments can be represented as:

Question

Quizplus · Accepted Answer

The current account of the balance of payments typically includes the trade balance (exports minus imports, represented as (X-IM)), net income from abroad (such as interest and dividends, which could be represented by the term involving "r"), and net current transfers (such as remittances, represented by "Tr"). Therefore, option C correctly combines these elements, indicating the sum of the trade balance, net income from abroad, and net current transfers.

Using the Notation Defined in This Chapter, the Current Account