Which balance-of-payments item does not directly enter into the calculation of the U.S.gross domestic product?
A) Merchandise imports
B) Shipping and transportation receipts
C) Direct foreign investment
D) Service exports

Question

Quizplus · Accepted Answer

Direct foreign investment does not directly enter into the calculation of the U.S. gross domestic product, as it refers to investments made by foreign companies into U.S. businesses, rather than U.S. economic activity. Merchandise imports, shipping and transportation receipts, and service exports are all included in the calculation of the balance of payments and ultimately impact the gross domestic product.

Which Balance-Of-Payments Item Does Not Directly Enter into the Calculation