Assume the following Balance of Payments data for a given country: Current Account Balance = $1,400 Capital Account Balance = $200 Statistical discrepancy = $200 From these data it can be deduced that the Financial Account Balance is $☐ (Enter your response as a whole number. Include the minus sign if necessary).

Consider this table, which shows hypothetical balance-of-payments data for the United States. Select the correct value for each of the boxes. Simplified Balance of Payments (Billions of Dollars) Account Net Balance Merchandise Services Income Unilateral Transfers Current Account Financial Account Statistical Discrepancy Trade Balance -5 -3 -2 +10 -3 0 an American business owner purchases chocolates from Belgium in order to sell them in her shops. This would be entered as a the section of the U.S. current account. The net value of the merchandise and services accounts combined gives the value of I + G + X. If you rewrite the equation as X = GDP - (C+1+G), you can see that the current_ item under within the national income accounting equation GDP = C + U.S. value of X implies that This means that the United States is producing than it is consuming, making it a Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts. Because the…

Display graphically changes in the current value of domestic currency, if the domestic currency depreciation at a significant rate is expected.

The following table shows the nominal and real exchange rates for two countries and two years (OECD, 2020a,b). The column names are the country codes (not the currency codes) and the exchange rates are expressed as the amount of the currency per unit of US dollar. Nominal Real Year FRA NZL FRA NZL 1996 0.7799 1.4548 0.7934 0.9916 2018 0.8468 1.4453 1.1195 0.9968 d. For each countries and each year, what is the ratio P" /P, where Pis the price level in the country and P" is the price level in the United States. Round your answer to the nearest fourth decimal. Year FRA NZL Number 1996 Number 2018 Number Number e. Answer this question for FRA. If we believe in the theory of purchasing power parity, what is likely to happen after 2018? i. Indicate whether the currency of FRA will appreciate, depreciate, or remain unchanged, against the US dollar in nominal term. Appreciate Depreciate Remain unchanged l. Indicate whether the currency of FRA will appreciate, depreciate, or remain unchanged,…