<P> In economics, a country's current account is one of the three components of its balance of payments, the others being the capital account and the financial account . The current account consists of the balance of trade, net primary income or factor income (earnings on foreign investments minus payments made to foreign investors) and net cash transfers, that have taken place over a given period of time . The current account balance is one of two major measures of a country's foreign trade (the other being the net capital outflow). A current account surplus indicates that the value of a country's net foreign assets (i.e. assets less liabilities) grew over the period in question, and a current account deficit indicates that it shrank . Both government and private payments are included in the calculation . It is called the current account because goods and services are generally consumed in the current period . </P> <P> The current account is an important indicator about an economy's health . It is defined as the sum of the balance of trade (goods and services exports minus imports), net income from abroad and net current transfers . A positive current account balance indicates that the nation is a net lender to the rest of the world, while a negative current account balance indicates that it is a net borrower from the rest of the world . A current account surplus increases a nation's net foreign assets by the amount of the surplus, and a current account deficit decreases it by that amount . </P>

A current account surplus of the u.s. implies that
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