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
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