BOP 1

Question 1

what is the balance of payments

Answer 1

measures the inflows and outflows of money in a country

Question 2

what does the current account measure

Answer 2

trade in goods and services ( trade balance)
primary income
secondary income

Question 3

what is primary income

Answer 3

money going into the UK owed firms in other countries

Question 4

what are the consequences of a current account deficit

Answer 4

lower AD
debt burdens could lead to econ crisis
exchange rate will decrease as