In a given year, a country has $150 million more in imports than in exports, has to pay $25 million in interest and $75 million in principal on its foreign debt and it receives $100 million in workers’ remittances. The country’s overall government budget deficit for the year is $27 It also draws $38 million dollars from its reserves and receives $42 million in portfolio investments from foreign investors. It has no other income payments or receipts. Calculate the current account balance for this country in that year
In a given year, a country has $150 million more in imports than in exports, has to pay $25 million in interest and $75 million in principal on its foreign debt and it receives $100 million in workers’ remittances. The country’s overall government budget deficit for the year is $27 It also draws $38 million dollars from its reserves and receives $42 million in portfolio investments from foreign investors. It has no other income payments or receipts. Calculate the current account balance for this country in that year
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 33CTQ: A government official announces a new policy. The country wishes to eliminate its trade deficit, but...
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- In a given year, a country has $150 million more in imports than in exports, has to pay $25 million in interest and $75 million in principal on its foreign debt and it receives $100 million in workers’ remittances. The country’s overall government budget deficit for the year is $27 It also draws $38 million dollars from its reserves and receives $42 million in portfolio investments from foreign investors. It has no other income payments or receipts.
Calculate the current account balance for this country in that year.
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