Question: How is this likely to affect economies that are heavily dependent on oil imports? a) Decrease in inflation b) Increase in their trade deficits c) Increase in their exports d) Decrease in their current account deficits
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A: Balance of Trade is net of those transactions that result from exports and imports of goods. It…
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A: Home CountryCd = 400 + 0.5(Y-T) - 100rwId = 300 - 100rwY = 2000T = 250G = 300Foreign CountryCd = 200…
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A: Since you have asked multiple questions, we will answer the first question for you. If you want any…
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A:
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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…
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A: Imports refer to the purchase of goods and services from foreign countries.Exports refer to the sale…
Q: Which of the following is included in a nation's current account? a) Purchases of foreign assets b)…
A: Bop , which stands for balance of payments, is the way a country makes record of its economic…
Q: Goods imports 635 Goods exports 419 Services imports 144 Services exports…
A: Current account balance includes the export and import of goods and services and unilateral transfer…
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- QUESTION 9 As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y= 13250: The functions that describe consumption and investment are still the same: cd(r) = 5000 – 1000r+ 0.25Y and Id(r) = 500 – 1800r +0.2Y. The government wants to take advantage of growth and increases its expenditures to: G- 1000: What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.A current account deficit is generally a result of: a large amount of U.S. purchases of foreign real estate. U.S. purchases of bonds issued by foreign corporations. imports exceeding exports. exports exceeding imports.eBook Problem 6-03 Consider the following information: Imports Net income from foreign investments Foreign investments in U.S. Government spending abroad Exports U.S. investments abroad Foreign securities bought by U.S. U.S. securities bought by foreigners Purchase of short-term foreign securities Foreign purchases of U.S. short-term securities $244.0 73.4 8.9 4.0 170.7 21.2 5.2 2.5 5.8 8.7 Determine the balance on the U.S. current account and capital accounts. Use a minus sign to enter the amount as a negative value. Round your answers to one decimal place. Balance on current account: $ Balance on capital account: $
- If domestic investment increases, and there is no change in the amount of private and public saving, what must happen to the size of the trade deficit?The US has a National Debt that exceeds $27 trillion and a budget deficit that is well over a trillion dollars. If US decides to cover the budget deficit through money creation (which leads to inflation and dollar depreciation), what are the impacts on: A) Domestic firms that use 100% domestic content and export their products, B) Domestic firms that use less than 100% domestic content that sell exclusively in the US, and C) The consumers who buy goods that have less than 100% domestic content?U.S. goods exports +$ 390 U.S. goods imports - 520 U.S. service exports +145 U.S. service imports -107 Net investment income +12 Net transfers -22 Capital account -5 Foreign purchases of U.S. assets +156 U.S. purchases of foreign assets -49 The accompanying table contains hypothetical data for the U.S. balance of payments in a year. All figures are in billions of dollars. The balance on the financial account was a A. $107 billion surplus. B. $102 billion surplus. C. $107 billion deficit. D. $102 billion deficit.
- Suppose a country exports $60 million worth of goods and services, while it imports $50 million worth of goods and services. This country has a trade deficit and negative capital inflow. has a trade deficit and a postive capital inflow. has a trade surplus and negative capital inflow. has a trade surplus and a positive capital inflow.True or False. Nations with persistent trade deficits often experience slower economic growth.14. Consider a country in the two-period analysis of trade imbalances experiencing a trade deficit in period I and no GNP growth between the two periods. Assuming that the country finances its trade deficits through borrowing in period I and repaying the entire loan in period 2 and the extra funds in period I are not directed into domestic investment, which of the following will be observed? a. The average standard of living in the country in period 2 will decline. b. The average standard of living in the country in period I will decline. c. The average standard of living in the country in period 2 will improve. d. The average standard of living in the country in period I will remain unaffected. e. The average standard of living in the country will remain stable over the two periods.