Which of the following would decrease the balance on the current account?
A)a decrease in foreign direct investment
B)a decrease in the amount of aid money the government sends abroad
C)a decrease in imports
D)None of the above will decrease the balance on the current account.

Question

Quizplus · Accepted Answer

The current account balance is affected by trade in goods and services, income, and current transfers. A decrease in foreign direct investment affects the financial account, not the current account. A decrease in aid money sent abroad would increase the current account balance, and a decrease in imports would also increase it. Therefore, none of the options would decrease the current account balance.

Which of the Following Would Decrease the Balance on the Current