Please help me these questions ASAP.. Thank you 1) Consider the economy of Aureus. Residents of Aureus purchased $150 million in new foreign assets during the year, and foreigners purchased $120 million in Aureus assets. Assume that the valuation effects total $1 million in capital gains. Assume KA = 0. a. Calculate the change in external wealth for Aureus.b. Calculate Aureus’s current account. Is the CA in deficit or surplus? 2) 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) Is Home a net creditor or debtor? What is Home’s external wealth measured in pesos? b) What is Home’s net position in dollar-denominated assets, measured in pesos? And what is it measured in U.S. dollars? c) If the peso depreciates to 1.2 pesos per dollar, what is the change in Home’s externalwealth in pesos?
Please help me these questions ASAP.. Thank you
1) Consider the economy of Aureus. Residents of Aureus purchased $150 million in new foreign assets during the year, and foreigners purchased $120 million in Aureus assets. Assume that the valuation effects total $1 million in
a. Calculate the change in external wealth for Aureus.
b. Calculate Aureus’s current account. Is the CA in deficit or surplus?
2) 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) Is Home a net creditor or debtor? What is Home’s external wealth measured in pesos?
b) What is Home’s net position in dollar-denominated assets, measured in pesos? And what is it measured in U.S. dollars?
c) If the peso
wealth in pesos?
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