2001, the economy of the United Kingdom exported goods worth 192 billion and services worth another 77 billion. It imported goods worth 225 billion and services worth 66 billion. Receipts of income from abroad were 140 billion while income payments going abroad were 131 billion. Government transfers from the United Kingdom to the rest of the world were 23 billion, while various U.K government agencies received payments of 16 billion from the rest of the world.

1. Calculate the U.K. merchandise trade deficit for 2001.

1. Calculate the current account balance for 2001.
2. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.