Do not use chatgpt. If Canadian exports of goods and services are $40 billion, imports of goods and services are$35 billion, transfers by Canadians to foreigners are $2 billion, and transfers from foreignersto Canadian citizens are $1 billion, then the current account balance isA.+$6 billionB.-$6 billionC.-$7 billionD.+$4 billionE.-$4 billion

To calculate the current account balance, you need to account for the following components:Net…

Answered: If Canadian exports of goods and…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter6: Managing In The Global Economy

Section: Chapter Questions

Problem 1E

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Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of 100 billion, total domestic savings of 1,500 billion, and total domestic physical capital investment of 1,600 billion. According to the national saving and Investment Identity, what will be the current account balance? What will be the current account balance if Investment rises by 50 billion, while the budget deficit and national savings remain the same?
A British pound cost 2.00 in U.S. dollars in 2008, but 1.27 in U.S. dollars in 2017. Was the pound weaker or stronger against the dollar? Did the dollar appreciate or depreciate versus the pound?
Refer to the table at right. The current account balance is A. $140. B. −$45. C. $170. D. $155.
Home’s currency, the peso, currently trades at an exchange rate of 1 peso per dollar. Home has external assets of $320 billion, 100% of which are denominated in dollars. It has external liabilities of $800 billion, 90% of which are denominated in dollars. a. What country in Latin America does “Home” reminds you of? b. Is Home a net creditor or debtor? What is Home’s external wealth measured in pesos? c.What is Home’s net position in dollar-denominated assets, measured in pesos? And what is it measured in U.S. dollars? d. If the peso depreciates to 1.2 pesos per dollar, what is the change in Home’s external wealth in pesos?
If foreigns investing in the United States (i.e. DI) is less than U.S. investors investing abroad (i.e. FI), ________. A. there is a financial account surplus B. the dollar is depreciating C. the dollar is appreciating D. the relative price of U.S. imports is increasing E. there is a financial account deficit
Consider the balance-of-payments accounting information for Lalaland in 2010 as shown in the table below. All values are in billions of dollars and any variables not provided below have a value of zero. Exports Imports Net foreign-investment income Capital outflows Capital inflows O A. an increase of $190 billion B. a decrease of $190 billion C. an increase of $50 billion D. a decrease of $50 billion E. insufficient information to determine 580 460 - 70 180 90 What is the net change in the stock of Lalaland's investments abroad in 2010?
Consider the balance-of-payments accounting information for Lalaland in 2010 as shown in the table below. All values are in billions of dollars and any variables not provided below have a value of zero. Exports Imports Net foreign-investment income Capital outflows Capital inflows 500 510 - 40 180 90 What is the net change in the stock of Lalaland's investments abroad in 2010? ..... O A. an increase of $30 billion O B. a decrease of $30 billion OC. a decrease of $50 billion O D. an increase of $50 billion O E. insufficient information to determine
Using this table, determine the value of the balance of the current account. a. -$100 b. -$25 c. -$20 d. -$55
View the data below for the exchange rate between the US dollar and the Japanese yen. How many yen could you get per dollar at the earliest date shown on the chart? Explain. How many yen could you get per dollar at the most recent date shown on the chart? Explain. Has the dollar appreciated or depreciated in value over time? Explain.
The dollar depreciates against foreign currencies. This makes foreign-produced goods for Americans and U.S.-produced goods for foreigners. As a result, U.S. fall and U.S. rise. more expensive; cheaper; imports; exports O cheaper; more expensive; imports; exports cheaper; more expensive; exports; imports more expensive; cheaper; exports; imports
1- $/yen = .009, yen/pound = 120, $/pound = 1.15 a. Is there alignment of exchange rates? b. Will arbitrage take place? c. At what direction the arbitrage will take place? d. For an investor investing $1000000, what will be the gain? Only typed answer
Who receives the greatest benefit from a trade deficit? O Foreign consumers O Domestic farmers exporting agricultural products O Domestic firms in industries with significant imports O Domestic individuals who own stock Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

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