BOP 1 Flashcards
1
Q
what is the balance of payments
A
measures the inflows and outflows of money in a country
2
Q
what does the current account measure
A
trade in goods and services ( trade balance)
primary income
secondary income
3
Q
what is primary income
A
money going into the UK owed firms in other countries
4
Q
what are the consequences of a current account deficit
A
lower AD
debt burdens could lead to econ crisis
exchange rate will decrease as
