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Unformatted text preview: = $20 million. Net factor payments from abroad represent the di/erence between GNP and GDP ; this is the $2 million paid for banjo playing in other countries. Net exports are $4 million (hay sold abroad) minus $6 million (soda pop imports) = & $2 million. (Note that banjo playing abroad is not part of GDP, so it is not part of net exports either) The current account balance is net exports + net factor payments = & $2 million +$2 million = 0 1...
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This note was uploaded on 10/10/2009 for the course ECON 3140 at Cornell.