Which of the following components of the current account are included in GDP?

Question

Quizplus · Accepted Answer

Net exports are included in GDP because they represent the value of goods and services produced by a country's domestic producers that are sold to foreign consumers. They are a component of the expenditure approach to calculating GDP.

B) Net foreign investment income and C) net transfer payments sent to foreigners are not included in GDP because they represent flows of income and transfers between residents and non-residents, not the production of goods and services. They are components of the current account of the balance of payments.

Which of the Following Components of the Current Account Are