D2) Economics Consider that a country's capital account balance has a $10 million deficit, and its current account has a $240 million surplus. What will its financial account balance have? $230 million deficit $230 million surplus $200 million deficit $170 million deficit $170 million surplus

Q: A country finds itself in the following situation: a government budget surplus of $630; total…

A: Budget surplus (or government saving) = $630 Domestic saving = $990 Investment = $900 Increase in…

Q: Calculate net exports and the amount of net foreign lending for a hypothetical small open economy…

A: Net export : Net export is the amount by which the total value of exports of a country surpasses or…

Q: 5. Current account deficit Let G stand for government spending, T for taxes, I for private…

A: Balance of Payment implies BOP is the comprehensive record of all international transactions in the…

Q: Table 10.2. International Investment Position of the United States U.S. assets abroad U.S.…

A: Given the following data:  U.S. assets abroad    U.S. government assets  $800 billion   U.S.…

Q: 3. Explain the relationship between a current account deficit or surplus and the flow of funds.

A: Current account of the country shows a deficit when the country in engaged in importing more goods…

Q: Assume that the following details apply to the U.S. economy: Government budget deficit: $150…

A: G - T = Government budget deficit = $150 billion. S = Domestic Savings = $2,000 billion I = Domestic…

Q: What is the capital and financial account balance... billion dollars The official settlements…

A: The balance of payment is the record of all cash inflows and outflows that occurred in the country…

Q: Refer to the following diagram to help you answer this question.   Image Attached With fixed…

A: The IS-LM model's equilibrium condition is met only when neither excess demand nor excess supply…

Q: Suppose that a nation has a current account deficit of 80 million dollars and a financial account…

A: PART 1 The balance of payments is a statement that looks at all transactions in the economy as well…

Q: 1) When a country realizes a deficit on its current account: a. It realizes an excess of imports…

A: The balance of payments would involve the record of transactions which are involved in the…

Q: A country that experiences a capital account surplus for many years will eventually experience many…

A: Since you have asked multiple questions, we will answer the first question for you. If you want any…

Q: Explain the main implications for a country of having a persistent deficit on the current account of…

A: Balance of payments (BOP) accounts is a double book keeping entry system in which the country…

Q: During the year, Japan had a current-account surplus of 98 billion. What is the gap between Japan’s…

A: Gross Domestic Product (GDP) is a measure that quantifies the total value of all goods and services…

Q: Many countries seem to be worried that they have negative trade balances with China. Is such a trade…

A: A trade imbalance happens when a nation's imports surpass its commodities during a given time-frame.…

Q: The following table shows the value of credits and debits in four balance-of-payments accounts in…

A: The value of credit and debit in the four balance of payment account for the economy is given as…

Q: REAL INTEREST RATE Cape (4) Demand Supply QUANTITY OF LOANABLE FUNDS REAL INTEREST RATE REAL…

A: According to theory of loanable funds there will be a market of loanable funds. The real interest…

Q: If national income Y = 10,500, disposable income Yd = 8,500 , consumption is C = 8,000, transfer…

A: The information given to us is as :-   National income Y = 10,500   Disposable income is Yd = 8,500…

Q: Suppose a Portuguese citizen travels to Tanzania to go on a safari and uses euros for the…

A: Balance of Payment: The balance of payments is a systematic record of all economic transactions…

Q: In an open economy, if exports equal $8 billion and imports equal $3 billion, then there is a trade…

A: Net capital outflow is the net flow of funds being invested abroad by a country over a certain…

Q: The interest rate in Japan is 2% and the interest rate in the US is 5%. The spot exchange rate is…

A: The interest rate in Japan is 2% The interest rate in the US is 5% The spot exchange rate is 100 yen…

Q: The US typically imports (M) more goods and services than it exports (X). a. Explain what this…

A: a. The main component of a country's current account balance is usually invariably its trade deficit…

Q: Australia has a current account surplus of $1 billion per quarter and a net income deficit of $5…

A: Australia is an open economy due to which it makes rade transactions with the rest of the world, and…

Q: 1) According to the J-curve effect, a depreciation of the TRY's exchange value has: a. No impact on…

A:

Q: Who receives the greatest benefit from a trade deficit? O Foreign consumers O Domestic farmers…

A: The trade deficit is the deficit in the balance of trade account. The balance of trade account is…

Q: D Question 1 Consider the following open economy. The real exchange rate is foxed and equal to one.…

A: * SOLUTION :-  (2)

Q: Consider the following economy:-   Mariginal propensity to save = 0.2 Mariginal propensity to…

A: Economic policy formulation will remain critical since it determines how the economy will develop…

Q: Question: Exercise 1:4. Calculate the net capital flow. Does this country experience a net capital…

A: Net Capital Flow = Capital Account Balance + Financial Account Balance + Reserves and Related Items…

Q: (D). A current account deficit (CA Y) and national saving is less than investment spending (S < I).…

A: Current Account Deficit measures the trade value of a country, where the goods and services that are…

Q: Discuss the implications of a persistent current account deficit for an open economy like Pakistan…

A: A current account deficit is a trade indicator that indicates a country's imports of goods,…

Q: Select all of the following statements which can be said of a country with a current account deficit…

A: The current account deficit is a measurement of a country’s trade where the value of the goods and…

Q: A country finds itself in the following situation: a government budget surplus of $800; total…

A: "Government;s budget surplus occurs when government savings are more than the government…

Q: The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a…

A: Trade deficit is a situation in which value of a country's imports exceeds the value of exports.

Q: I just need correct answer of last part with explanation. Please solve only E part.   Balance of…

A: Given: Debtland’s GDP is = $650 billion Debtland's current account deficit of = $42 billion…

Q: If national income Y = 10,000, disposable income Yd = 8,000 , consumption is C = 7,500, transfer %3D…

A: Disposable income is total personal income minus current income taxes. In national accounts…

Q: Fill in the blanks in the hypothetical balance of payments statement in the table below. negative…

A: The balance of payments is a statement that records the transactions made by a country’s residents,…

Q: Exports of goods and services 1,872 Imports of goods and services 2,375 Net unilateral transfers -99…

A: Given: Exports of goods and services 1,872 Imports of goods and services 2,375 Net unilateral…

Q: 5     In one country, the current account deficit is at the level of 10 billion dollars. This…

A: Deficit of Currents account  A deficit occurs when the amount of money leaving the country exceeds…

Q: Item Imports of goods and services Foreign investment in the United States Exports of goods and…

A: The current account balance (Taxi) is important for a country's monetary inflow and surge record. It…

Q: Question 4 All other things being equal, which of the following is most likely to lead to…

A: Balance of payment refers to the statement that record all the transaction between a nation and the…

Q: Question: What is the term for a situation where a country exports more goods and services than it…

A: Ans. The correct term for a situation where a country exports more goods and services than it…

Q: Question 1: International interdependencies In a two-country world with countries A and B, A has an…

A: International interdependencies refer to the complex relationships that exist between countries as a…