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6.3.4 consequences of imbalances in the current account of the balance of payments for the domestic and external economy
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What is a current-account imbalance?

What is a current-account imbalance?

A current-account deficit occurs when outflows exceed inflows, so the current-account balance is negative. A surplus occurs when inflows exceed outflows, so the balance is positive. The current account includes the trade balance, primary income and secondary income, so a change in the current-account balance does not necessarily mean that net exports, X−MX-MX−M, change in the same direction.

6.3.4 consequences of imbalances in the current account of the balance of payments for the domestic and external economy Lesson

  1. Intl A Level
  2. /Economics
  3. /6.3.4 consequences of imbalances in the current account of the balance of payments for the domestic and external economy

Step-by-step lessons on CIE Intl A Level Economics 6.3.4 consequences of imbalances in the current account of the balance of payments for the domestic and external economy. Each one builds up to exam-style questions.