Subjects economics

Current Account Dc8Fb5

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1. **State the problem:** Calculate the current account balance for Nyagahandagaza Country using the given data. 2. **Formula:** The current account balance is calculated as: $$\text{Current Account} = (\text{Exports of goods} - \text{Imports of goods}) + (\text{Exports of services} - \text{Imports of services}) + (\text{Income received from foreign investments} - \text{Income paid to foreign investors})$$ 3. **Substitute the values:** $$= (120 - 100) + (30 - 20) + (15 - 10)$$ 4. **Calculate each term:** $$= 20 + 10 + 5$$ 5. **Sum the terms:** $$= 35$$ 6. **Interpretation:** The current account balance is 35 million, indicating a surplus of 35 million. Note: Foreign direct investment, purchase of foreign assets, and changes in official reserve assets are part of the capital and financial account, not the current account.