Based on the following information, what is the balance on the current account? Exports of goods and services = $5 billion
Imports of goods and services = $3 billion
Net income on investments = -$2 billion
Net transfers = -$2 billion
Increase in foreign holdings of assets in Canada = $4 billion
Increase in Canadian holdings of assets in foreign countries = -$1 billion
A) -$2 billion
B) $1 billion
C) $2 billion
D) $3 billion
E) $4 billion
Correct Answer:
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