The current account is equal to the balance on goods and services (plus, minus)

Question

The current account is equal to the balance on goods and services (plus, minus) _______ net investment income and net transfers. When investment income received by U.S. individuals and businesses from foreigners is greater than investment income Americans pay to foreigners, then net investment income is a (negative, positive) _______ number; when transfer payments from the United States to other nations are greater than transfer payments from other nations to the United States, then net transfers are a (negative, positive) _______ number.

Explanation / Answer

answers:

plus,      positive number,      negative number

definition/explanation :

The current account balance comprises the balance of trade in goods and services plus net investment incomes from overseas assets.

when net investmet received is greater investment income pay to foreigners, so obviously its positive.

lastly, if net transfer payment from one coutry to other nation is more than net transfer payment to that nation, then net transfer is negative for that nation. 

thank you

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