Asked by Sarah Albertson on Jul 25, 2024

verifed

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.
verifed

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.