Goods exports $+40 Goods imports -30 Service exports +15 Service imports -10 Net investment income -5 Net transfers +10 Balance on capital account Foreign purchases of Alpha assets +20 Alpha purchases of assets abroad -40

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A: Managed float policy: It is an international financial environment in which the rate of exchange…

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Q: “According to the logic of the J-curve analysis, a country that revalues its currency should have an…

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Q: Suppose in the goods market equilibrium of an open economy, saving is $6 billion, and investment is…

A: According to the question, Saving= $6 billion Investment=$8 billion Measurement error =0

Q: You are given the following information: Exports X = 1,300 Imports M = 2,000 Capital inflows ki =…

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Q: Here are some balance of payments data (without pluses and minuses): Category Exports of goods…

A: Financial account of the balance of payment. It  is a measurement of increases or decreases in…

Q: A government finds itself in the following situation: a government budget deficit of $900; total…

A: The government budget deficit is given as $900.The total domestic savings is given as $2000 and the…

Q: Savings by households 10 percent Savings by businesses 15 percent Private investment 19 percent Net…

A: Calculation of current account balance .

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A: Foreign Exchange Market: The foreign exchange market can be defined as an  institution which…

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

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Q: If Brazil’s current account balance is -150b and its financial account balance is +130b, what must…

A: Balance of Payment is the sum of balance of current account, capital account and financial account.…

Q: Which of the following would most likely be included in the positive side of the U.S. current…

A: The question given relates to the balance of payment(BOP) which means systematic record of economic…

Q: What do the plus signs and negative signs signify in the U.S. balance-of-payments statement? Which…

A: The balance of payment (BOP) includes the inflow and outflow of capital related to the country. It…

Q: Suppose you know that exports for a nation are $24 billion and imports are $25 billion.…

A: Here we calculate and fill the blanks by using the given data , so the calculation of the following…

Q: There is no difference between balance of trade and balance on current account of balance of payment…

A: According to the given question Relatively stated that the balance of trade which is also known by…

Q: Which of the following best describes Relative Purchasing Power Parity? A basket of goods should…

A: The amount of goods and services that can be bought with given income is referred to as purchasing…

Q: Each of the transactions indicated in Q.3.1.1 to Q.3.1.5 must be entered into South Africa’s Balance…

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Q: e following list gives the balance of payments account information: Increase in foreign holdings of…

A: Balance of Trade = Export of goods & services - Import of goods & services Balance on…

Q: Suppose that a country follows a managed-float policy but that its exchange rate is currently…

A: If there is a system of exchange rate floating & deficit in CA (current account) then there will…

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A: The appreciation of the currency means increase in the value of the currency in relative to foreign…

Q: Briefly define the current account, capital/financial account and official settlements account of a…

A: Balance of payment is the accounting records of all monetary transaction occured between nations .…

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

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Q: In balance-of-payments accounting, the acquisition of a foreign production facility by a Canadian…

A: In the balance of payments account of a country, any transaction that brings in goods foreign assets…

Q: If I euro will buy $1.45, then O$100 will purchase 69 euro. $100 will purchase 79 euro.

A: The exchange rate is the rate at which one currency is exchanged for another currency.

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Q: Which of the following is included in a nation's current account? a) Purchases of foreign assets b)…

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Q: In 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It…

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Q: US donates made-in-US vaccines to South Africa. How is the transaction recorded on the U.S. balance…

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A: The part of the balance of payments that records a country's international transactions involving…

Q: For each of the following transactions, show the two entries in the US balance of payments. For each…

A: A country's overall economic interactions with the rest of the world over a specific time period are…