Rearranging the previous equation and solving for Y yields Y GDP results in the following relationship: . Plugging this into the original equation showing the various components of S = This is equivalent to S , since net exports must equal net capital outflow (NCO, also known as net foreign investment). Now suppose that a country is experiencing balanced trade. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to). Outcomes of Balanced Trade Exports Net Exports Imports 0 Y C+I+G Saving Net Capital Outflow Investment 0

The exports of Uruguay, a developing country, are made essentially of primary commodities. A comparison between export prices received by Uruguay and the price paid for its imports shows the following: on average export prices rose 40% between 2000 and 2010, while import prices went up by 150%. Index quantities exported by the country were Qx = 15 (in 2000), and Qx = 30 (in 2010).   Uruguay’s income terms of trade (ITT) in 2000, was:   Group of answer choices   100.   1,680.   2,000.   250.   1,500.

18. Deriving net exports By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypothetical two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japan minus exports from the United States. Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports. Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you enter a value in a white field, the graph and any corresponding amounts in each grey…

Explain why tourism satellite accounts are useful and give examples for direct and indirect effects (two examples for each) in tourism related field.

Country A imports $40 of shirts and exports $40 of under wears. Its balance of trade is_ +10; E: -20). (A: -20; B-10; C: 0; D:

3) You want to study the effects of disposable income, anti-smoking advertising and cigarette prices on the per capita consumption of cigarettes in US. You collect data on these variables across the 51 states over 20 years. You thus have 51x20=1,020 data points. For each state and year, you measure: Y=per capita consumption of cigarette (the fraction of the state population that smoked in that year); Xı=per capital income in the state (in US$); Xx=total expenditure in anti-smoking advertising in that state (in USS); and X3=average cigarette price in the state (in US$). You can then run a model: Y= Bo+Bi*X++ B2*X+ B3*X3+e Explain how you would test that the model is useful in predicting Y: How you would test the alternative hypothesis that you have at least one of the coefficients B1, ß2 or ß3 is different from zero. (That is, the null is that all three coefficients are zero.) Use a significance level a=0.05. (Again, there is no need to “run" the data. Just explain what you would do.…

(1.4) Consider the following IS-LM model: I Y=C+I+G C=100+0.4(Y-T) I= 150 +0.2Y - 4,000r r = 0.01 with G = 200 and T = 100. (a) Derive the IS curve and draw it in an appropriate diagram. (b) Calculate the equilibrium values of Y, C, I and r. (c) What is the impact of decreasing government spending to G' = 180 in terms of the new equilibrium value Y"? (d) Suppose the central bank decides it wants to counteract the restrictive fiscal policy. What exactly (i.e. we look for graphical and numerical answers) can the central bank do in order to keep equilibrium output at the value obtained for Y in (b)?

Attempts 수 4. Pricing foreign goods Average/2 The exchange rate is the price of one currency in terms of another currency. An exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts exchange rate data for May 21, 2018, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Lithuanian litas (LTL) Canadian dollar (CAD) Euro (EUR) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.3329 0.7176 1.129 0.0934 1.603 Suppose that on May 21, 2018, an ornamental bookcase handmade in Mexico is priced at MXN 10,760. The approximate U.S. dollar price of the bookcase would be If the exchange rate for the U.S. dollar-Mexican peso falls from $0.0934 to $0.0747 per Mexican peso, the U.S. dollar relative to the Mexican peso. in value, or Saun & Continue

Suppose that the central bank in the UK (The Bank of England) decides to raise interest rates because it is worried about high inflation. As a result, interest rates in the UK become higher than interest rates in the REST OF EUROPE. This acts as an incentive for EUROPEAN investors to increase the amount of funds they invest in British (UK) interest bearing assets. In order to increase their purchases of those UK assets, which are priced in PST, EUROPEAN investors have to convert EUR into PST. This conversion, in turn, increases the demand for PST. Based on the above information, please explain what will happen to the EUR–‐‑PST exchange rate. In other words, will the increased demand for PST, make PST gain value (appreciate

Solve the following system of equations for a and for b: System of Equations: Value of a Value of b 4a + 2b = 20 15a + 5b = 60