Asked by Sarah Albertson on Jul 25, 2024
Verified
Which one of the following will not directly affect the U.S. balance on the 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
Goods Imports
The act of bringing in goods and services from a foreign country for trade or sale within a domestic market.
Net Investment Income
The profit from investments after deducting all related expenses, such as interest payments and fees.
Purchases of Assets
The acquisition of assets, such as property, equipment, or securities, by a company or individual as investments or for production purposes.
- Identify the elements included in the current account of a nation's balance of payments.
Verified Answer
ZK
Zybrea KnightJul 31, 2024
Final Answer :
C
Explanation :
The U.S. balance on the current account is primarily affected by trade in goods and services and net investment income, not by purchases of assets abroad, which are recorded in the financial account.
Learning Objectives
- Identify the elements included in the current account of a nation's balance of payments.