Question

the us exports 10 million dollars worth of goods to argentina. what happens to the current account balance ap macroeconomics

Answer 1

Assuming all other factors remain constant, the current account balance will increase by 10 million dollars. This is because exports are a component of the current account, which measures the balance of trade in goods and services, as well as net income and transfer payments. When a country exports more than it imports, its current account balance increases.

Answer 2

The US exports 10 million dollars worth of goods to Argentina. This will have a positive effect on the current account balance in AP Macroeconomics.The current account balance is a measure of the country's trade balance with other nations. It is calculated by subtracting the value of a country's imports from its exports. A positive current account balance indicates that a country is exporting more than it is importing.When the US exports 10 million dollars worth of goods to Argentina, it will increase the value of US exports and therefore have a positive impact on the current account balance. The more a country exports, the higher its current account balance and the stronger its economy becomes.
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Answer 3

However, it's important to note that a country's current account balance is impacted by other factors as well, such as its investments, transfers, and net income from abroad. Additionally, fluctuations in exchange rates can also affect the current account balance. Therefore, while an increase in exports will generally have a positive effect, it's important to consider the broader context and other factors that could impact the balance.