In September,2005,exports of goods from the U.S.decreased $3.3 billion to $73.4 billion,and imports of goods increased $3.8 billion to $144.5 billion.This increased the deficit in:

Question

Quizplus · Accepted Answer

Imports and exports of goods affect the current account in the balance of payments, which measures the trade balance for goods and services. An increase in imports and a decrease in exports would increase the trade deficit and therefore increase the deficit in the current account. The financial account measures capital flows and investments and is not directly affected by changes in trade balances. Unilateral transfers refer to one-way payments or donations and would not be affected by changes in exports or imports of goods.

In September,2005,exports of Goods from the U