Krugman's Economics For The Ap® Course
Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
Question
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Chapter 8R, Problem 1MCQ
To determine

The transaction that will be counted in U.S. current account.

Expert Solution & Answer
Check Mark

Explanation of Solution

The current account, one of three elements that make up a country's balance of payments system, consists of the trade balance, or the difference between imports and exports of goods and services, plus income from overseas investments less payments to foreign investors. The current account keeps track of a country's interactions with the rest of the world during a certain time period, such a year or quarter, including its net commerce in products and services, net returns on international investments, and net transfer payments.

From the above we can conclude that the correct option is A.

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