If net primary income and net secondary income are $0,and a country's purchases of foreign goods and services are $25 billion while its sales of goods and services overseas are $26 billion,it has a

Question

Quizplus · Accepted Answer

The current account is calculated as follows: Current account = Net primary income + Net secondary income + Balance of trade (exports - imports). Since net primary income and net secondary income are given as $0, the current account equals the balance of trade. The country has sold $26 billion worth of goods and services overseas and purchased $25 billion worth of foreign goods and services, resulting in a surplus of $1 billion in its balance of trade (exports > imports). Therefore, the answer is (D) $1 billion surplus in its current account.

If Net Primary Income and Net Secondary Income Are $0,and