b-1. Compute the balance on the U.S. primary income. b-2. What does the balance on the U.S. primary income you computed above mean? c-1. Compute the balance on the U.S. secondary income. c-2. What does the balance on the U.S. secondary income you computed above mean? d-1. Compute the balance on the U.S. current account. d-2. What does the balance on the U.S. current account you computed above mean?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Need, ,,,,b1, c1 and d1 only

b-1. Compute the balance on the U.S. primary income.
b-2. What does the balance on the U.S. primary income you computed above mean?
c-1. Compute the balance on the U.S. secondary income.
c-2. What does the balance on the U.S. secondary income you computed above mean?
d-1. Compute the balance on the U.S. current account.
d-2. What does the balance on the U.S. current account you computed above mean?
Transcribed Image Text:b-1. Compute the balance on the U.S. primary income. b-2. What does the balance on the U.S. primary income you computed above mean? c-1. Compute the balance on the U.S. secondary income. c-2. What does the balance on the U.S. secondary income you computed above mean? d-1. Compute the balance on the U.S. current account. d-2. What does the balance on the U.S. current account you computed above mean?
A Summary of the U.S. Balance of Payments for 2021 (in $ billion)
Current Account
[1] Exporte
[1.1] Goods
[1.21 Services
[2] Imports
[2.1] Goods
[2.2] Services
131 Primary income
[4] Secondary income
Balance on current account [[1]+[2]+[3]+[41]
Capital Account
Balance on capital account
Financial Account (excluding official reserves)
[5] Direct investment
161 Portfolio investment
[6.1] Equity securities
(6.21 Debt securities
[6.3] Derivatives, net
(7) Other investment
Balance on financial account [[5]+[6]+[7]]
[8] Statistical discrepancies
Overall balance
official Reserve Account
Source The US Bureau of Economic Analysis
Credita
$2,728.0
1,743.0
985.0
1,394.9
339.2
3.7
572.2
488.9
-424.1
601.3
311.7
816.4
1,205.2
87.9
Debitn
-$3,914.7
-2,963.6
-951.1
-1,073.0
-556.9
-1,082.5
-33.5
-29.8
-302.2
13.5
343.4
-329.9
-383.6
-5.0
-87.9
Transcribed Image Text:A Summary of the U.S. Balance of Payments for 2021 (in $ billion) Current Account [1] Exporte [1.1] Goods [1.21 Services [2] Imports [2.1] Goods [2.2] Services 131 Primary income [4] Secondary income Balance on current account [[1]+[2]+[3]+[41] Capital Account Balance on capital account Financial Account (excluding official reserves) [5] Direct investment 161 Portfolio investment [6.1] Equity securities (6.21 Debt securities [6.3] Derivatives, net (7) Other investment Balance on financial account [[5]+[6]+[7]] [8] Statistical discrepancies Overall balance official Reserve Account Source The US Bureau of Economic Analysis Credita $2,728.0 1,743.0 985.0 1,394.9 339.2 3.7 572.2 488.9 -424.1 601.3 311.7 816.4 1,205.2 87.9 Debitn -$3,914.7 -2,963.6 -951.1 -1,073.0 -556.9 -1,082.5 -33.5 -29.8 -302.2 13.5 343.4 -329.9 -383.6 -5.0 -87.9
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