Question

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

Answer 1