$$\begin{array} { l c }
\text { Variables } & \text { (billions of dollars) } \
\hline \text { Imports of goods and services } & 1,400 \
\text { Exports of goods and services } & 1,600 \
\text { Net interest } & 0 \
\text { Net transfers } & 0 \
\text { Foreign investment in the United } & \
\text { States } & 480 \
\text { U.S. investment abroad } & 700 \
\hline
\end{array}$$
The table has some of the U.S.balance of payments account.
-If there is no statistical discrepancy, the capital account balance equals ________.

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.
-If there is no statistical discrepancy, the capital account balance equals ________.

Quizplus · Accepted Answer

The current account balance is calculated as exports minus imports, which is $1,600 billion - $1,400 billion = $200 billion. The capital account balance should offset this to maintain the balance of payments, so it is -$220 billion (since $480 billion - $700 billion = -$220 billion).

The Table Has Some of the U