Country A is an open economy, where the economic agents make both current account and financial account transactions with the rest of the world. The value of foreign holdings in Country A's assets increases by 11% every year, the value Country A's holdings of foreign assets increases by 5% every year, and the value of Country A's net capital transfers increase by 4% every year. Let the currency of Country A be denoted by CA, The table shows some of the information about the Balance of Payments account for Country A, for the year 2012. Transactions (1) Exports (2) Imports Value (in CA) 200 400 45 (4) Income payments made to foreign residents 400 (3) Net capital transfers (5) Income payments received by domestic residents?? (6) Foreign holdings of Country A's assets (7) Country A's holdings of foreign assets 300 400 What would be the minimum amount of income payments received needed by Country A if it wants a current account surplus of CA 100? Income payments received by domestic residents-C4 655 x (Round to the nearest dollar.) What is the financial account balance of this country in 2014? Financial account balance-C4 -22.7. (Round your answer to two decimal places.)
Country A is an open economy, where the economic agents make both current account and financial account transactions with the rest of the world. The value of foreign holdings in Country A's assets increases by 11% every year, the value Country A's holdings of foreign assets increases by 5% every year, and the value of Country A's net capital transfers increase by 4% every year. Let the currency of Country A be denoted by CA, The table shows some of the information about the Balance of Payments account for Country A, for the year 2012. Transactions (1) Exports (2) Imports Value (in CA) 200 400 45 (4) Income payments made to foreign residents 400 (3) Net capital transfers (5) Income payments received by domestic residents?? (6) Foreign holdings of Country A's assets (7) Country A's holdings of foreign assets 300 400 What would be the minimum amount of income payments received needed by Country A if it wants a current account surplus of CA 100? Income payments received by domestic residents-C4 655 x (Round to the nearest dollar.) What is the financial account balance of this country in 2014? Financial account balance-C4 -22.7. (Round your answer to two decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Only typed solution
![Country A is an open economy, where the economic agents make both current account and financial account transactions with the rest of the world. The value of foreign holdings in Country A's assets increases by 11% every year, the value o
Country A's holdings of foreign assets increases by 5% every year, and the value of Country A's net capital transfers increase by 4% every year. Let the currency of Country A be denoted by CA,
The table shows some of the information about the Balance of Payments account for Country A, for the year 2012.
Transactions
Value (in
CA)
(1) Exports
(2) Imports
(3) Net capital transfers
200
400
45
(4) Income payments made to foreign residents
400
(5) Income payments received by domestic residents??
(6) Foreign holdings of Country A's assets
300
400
(7) Country A's holdings of foreign assets
What would be the minimum amount of income payments received needed by Country A if it wants a current account surplus of CA 100?
Income payments received by domestic residents=CA 655 × (Round to the nearest dollar.)
What is the financial account balance of this country in 2014?
Financial account balance=CA -22.7✓
(Round your answer to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F678af982-7aee-4d90-aea4-586f9ecb89dd%2Fe2bb0d61-8778-46ce-92bd-683f6c95fd5c%2Fr0wjjl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Country A is an open economy, where the economic agents make both current account and financial account transactions with the rest of the world. The value of foreign holdings in Country A's assets increases by 11% every year, the value o
Country A's holdings of foreign assets increases by 5% every year, and the value of Country A's net capital transfers increase by 4% every year. Let the currency of Country A be denoted by CA,
The table shows some of the information about the Balance of Payments account for Country A, for the year 2012.
Transactions
Value (in
CA)
(1) Exports
(2) Imports
(3) Net capital transfers
200
400
45
(4) Income payments made to foreign residents
400
(5) Income payments received by domestic residents??
(6) Foreign holdings of Country A's assets
300
400
(7) Country A's holdings of foreign assets
What would be the minimum amount of income payments received needed by Country A if it wants a current account surplus of CA 100?
Income payments received by domestic residents=CA 655 × (Round to the nearest dollar.)
What is the financial account balance of this country in 2014?
Financial account balance=CA -22.7✓
(Round your answer to two decimal places.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education