The differences between a country's merchandise exports and its merchandise imports is the ?
Correct answer: D. balance of trade
- A. balance of payments
- B. capital account
- C. current account
- D. balance of trade
Explanation
The balance of trade measures the difference between merchandise, or goods, exports and merchandise imports. The current account is broader because it also includes services, income and transfers.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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