Because it provides some indication of what is happening to U.S.claims on foreign wealth and the demand for imports and exports,the ________ is closely followed by economists wanting information on the future movement of exchange rates.

Question

Quizplus · Accepted Answer

The current account balance provides information on the net flow of goods, services, income, and transfers between the U.S. and other countries. It is closely watched by economists as it gives an indication of the demand for imports and exports and can affect the future movement of exchange rates. The trade balance only covers goods and services, while the capital account records investment flows, and the statistical discrepancy represents the difference between recorded financial transactions and reported data.

Because It Provides Some Indication of What Is Happening to U.S.claims