At the beginning of 2014 Country A's Net International Investment Position is - at book (or accounting) value - equal to $0. During 2014 Country A residents purchase shares in Country B's stock market for $500, and Country A's government sells treasury bonds to Country B's residents for $5 Country A's Current Account Balance in 2014 and 2015 is 0, and no other financial account entries are recorded in Country A's balance of payme the end of 2015, however, Country B's shares owned by Country A residents have increased their value by 5%, while the Country A's treasury bo owned by Country B's residents have gained 10% of their original market value. What is the market value of Country A's Net International Investn Position at the end of 2015?
At the beginning of 2014 Country A's Net International Investment Position is - at book (or accounting) value - equal to $0. During 2014 Country A residents purchase shares in Country B's stock market for $500, and Country A's government sells treasury bonds to Country B's residents for $5 Country A's Current Account Balance in 2014 and 2015 is 0, and no other financial account entries are recorded in Country A's balance of payme the end of 2015, however, Country B's shares owned by Country A residents have increased their value by 5%, while the Country A's treasury bo owned by Country B's residents have gained 10% of their original market value. What is the market value of Country A's Net International Investn Position at the end of 2015?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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