Principles of Macroeconomics / Unit 7 MAC 0602 short lesson, about 20 seconds
The Current Account
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The idea
The current account is the broader measure. It adds services, income earned on assets abroad and paid to foreign owners, and one-way transfers.
In practice
Foreign aid, charity and money sent home by workers are transfers.
Where people slip
Four components, then: goods, services, income, and transfers. The current account is the one the exam means by trade balance.
Your place on the trail
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Builds on
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