The current account is part of the balance of payments, which records international transactions. The current account includes foreign transactions that are not associated with a future financial obligation, such as imports and exports. Therefore, when net exports increase, the current account balance increases.

The current account is part of the balance of payments, which records international transactions, not domestic.

An increase in real GDP does not necessarily mean an increase in the current account, so this is not the best option for this question. If real GDP increases because domestic spending increased, then the current account would not change. If this option read “An increase in real GDP due to an increase in net exports,” then this option would be correct.

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