Which one of the following will not directly affect the U.S.balance on current account?
A) An increase in U.S.goods imports.
B) A decrease in U.S.net investment income.
C) An increase in U.S.purchases of assets abroad.
D) An increase in U.S.imports of services.

Question

Quizplus · Accepted Answer

An increase in U.S. purchases of assets abroad affects the financial account, not the current account. The current account includes trade in goods and services, net income, and current transfers.

Which One of the Following Will Not Directly Affect the U.S.balance