Macro 6.1 Balance of Payments

This video covers topic 6.1 of the AP Macroeconomics Course Exam Description (CED). This video is all about the balance of payments, capital inflows and outflows, trade deficits and surpluses, etc.

or

Note: AP©, Advaanced Placement Program©, and College Board© are registered trademarks of the College Board, which was not involved in the production of, and does not endorse, this material.

[cartilo]

the balance of payments game was great esp with explanations like "resources leave the country so it's sale of capital good", helped me distinguish them from assets, thanks for the helpful resources!

[myplace]

by any chance did you switch surplus and deficit? everywhere online its the opposite so im a bit confused. shouldnt trade surplus be exports>imports ?

[amyliu]

At 1:55, if the income earned from the investment is going to be counted in the current account, what is counted in the capital and financial account of a direct foreign investment then?

[ziad]

I didnt get why it should balance out?

why would a decrease in the current account cause and increase in the financial account?

[amyliu]

At 2:30, is debit the same thing as debt?