part b- current account deficits/surpluses

• What is the formula for the current balance?

  Current balance = Balance of trade + Balance of invisibles + Net income and current transfers
• What indicates a current account surplus?

  Exports are greater than imports
• What indicates a current account deficit?

  Imports are greater than exports
• What is the result of a current account surplus?

  The current balance is positive
• What is the result of a current account deficit?

  The current balance is negative