$$\begin{array} { l c }
\text { Variables } & \text { (billions of dollars) } \
\hline \text { Imports of goods and services } & 1,400 \
\text { Exports of goods and services } & 1,600 \
\text { Net interest } & 0 \
\text { Net transfers } & 0 \
\text { Foreign investment in the United } & \
\text { States } & 480 \
\text { U.S. investment abroad } & 700 \
\hline
\end{array}$$
The table has some of the U.S.balance of payments account.
-The current account balance is equal to ________.

Question

$$\begin{array} { l c } 
\text { Variables } & \text { (billions of dollars) } \
\hline \text { Imports of goods and services } & 1,400 \
\text { Exports of goods and services } & 1,600 \
\text { Net interest } & 0 \
\text { Net transfers } & 0 \
\text { Foreign investment in the United } & \
\text { States } & 480 \
\text { U.S. investment abroad } & 700 \
\hline
\end{array}$$ 
The table has some of the U.S.balance of payments account.
-The current account balance is equal to ________.

Quizplus · Accepted Answer

The current account balance is equal to the sum of the trade balance (exports minus imports) and net factor income (net interest plus net transfers). In this case, the trade balance is $1,600 billion - $1,400 billion = $200 billion, and net factor income is $0 billion + $0 billion = $0 billion. Therefore, the current account balance is $200 billion + $0 billion = $200 billion.

The Table Has Some of the U