current account and government budget Flashcards

1
Q

what is the current account made up of

A

balance of trade in goods
balance of trade in services
the balance of primary income
the balance of secondary income

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2
Q

what is net primary income

A

the difference between the inward and outward flows of investment income

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3
Q

what is the balance of secondary income

A

transfer payments made between counties without any repayment. The UK tends to be in defecit due to EU payments and deploying forces in Afghanistan

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