The country of Pimm exports $500 billion worth of goods and services and imports $400 billion worth of goods and services. Net interest income paid abroad is $50 billion and net transfers are $0. The current account balance is ________.

Question

Quizplus · Accepted Answer

The current account balance is calculated as exports minus imports plus net interest income and net transfers. Here, it is $500 billion (exports) - $400 billion (imports) - $50 billion (net interest income) + $0 (net transfers) = $50 billion.

The Country of Pimm Exports $500 Billion Worth of Goods