Which of the following would increase the balance on the current account?
A)an increase in foreign direct investment
B)an increase in the amount of aid money the government sends abroad
C)an increase in imports
D)an increase in the balance of trade

Question

Quizplus · Accepted Answer

An increase in the balance of trade (the difference between a country's exports and imports) would increase the balance on the current account, as it indicates that the country is exporting more than it is importing, contributing positively to its current account balance.

Which of the Following Would Increase the Balance on the Current