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Question: the official settlements account of a country measures borrowing and...

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The official settlements account of a country measures

borrowing and lending between the country's residents and foreigners.

the net increase or decrease in the country's official reserves.

the receipts from goods and services bought and sold and transfers to and from foreigners.

net transfer payments between the country's citizens and foreigners.

Component Amount
(billions of dollars)
Gross investment 1300
Personal consumption expenditure 1475
Depreciation 25
Government expenditure on goods and services 1315
U.S. imports 260
U.S. exports 249
Compensation of employees 65


The above table gives data for a hypothetical nation. Gross domestic product is

$4,339 billion.

$4,054 billion.

$4,079 billion.

$4,049 billion.

Today, the United States is a

I. net borrower.
II. net lender.
III. debtor nation.
IV. creditor nation.

I and IV

II and IV

I and III

II and III

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