SHORT ANSWER QUESTIONS Increase in foreign holdings of assets in the United States Exports of goods Imports of services Statistical discrepancy Net transfers Exports of services Imports of goods Income payments on investments Increase in U.S. holdings of assets in foreign countries Income received on investments b. the balance of trade c. the balance on the financial account $3,288 d. statistical discrepancy 64 694 31. The following are hypothetical data on the U.S. balance of payments. You can assume the balance on capital account is zero. Use the data to calculate the following (SHOW YOUR WORK) a. the balance on the current account -1,520 -444 -3,286 545 12. State how each of the following will affect the relative values of the U.S. dollar and the British pound (say which currency appreciates and which currency depreciates): (a) U.S. citizens switch from buying stock in U.S. companies to buying stock in British companies. (b) The inflation rate in the United States decreases relative to the inflation rate in England. (e) The interest rate in the Britain falls relative to the interest rate in the United States. (d) Income in the United States decreases relative to British income.

SHORT ANSWER QUESTIONS Increase in foreign holdings of assets in the United States Exports of goods Imports of services Statistical discrepancy Net transfers Exports of services Imports of goods Income payments on investments Increase in U.S. holdings of assets in foreign countries Income received on investments b. the balance of trade c. the balance on the financial account $3,288 d. statistical discrepancy 64 694 31. The following are hypothetical data on the U.S. balance of payments. You can assume the balance on capital account is zero. Use the data to calculate the following (SHOW YOUR WORK) a. the balance on the current account -1,520 -444 -3,286 545 12. State how each of the following will affect the relative values of the U.S. dollar and the British pound (say which currency appreciates and which currency depreciates): (a) U.S. citizens switch from buying stock in U.S. companies to buying stock in British companies. (b) The inflation rate in the United States decreases relative to the inflation rate in England. (e) The interest rate in the Britain falls relative to the interest rate in the United States. (d) Income in the United States decreases relative to British income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Examine the summary of the balance of payments of the United States for 2021. Compute and discuss the balance on the current account and its subaccounts. A Summary of the U.5. Balance of Payments for 2021 (in $ billion) Credits Debits Current Account [1] Exports $ 2,596.0 [1.1] Goods 1, 683.0 [1.2] Services 913.0 [2] Imports-53,374.7 [2.1] Goods-2, 663.6 [2.2] Services -711.1 [3] Primary Income 1,214.9-953.0 [4] Secondary income 219.2-376.9 Balance on current account [[1]+[2]+[3]+[4]-674.5 Capital Account 1.3-15.5 Balance on capital account -14.2 Financial Account (excluding official reserves) [5] Direct investment 392.2-182.2 [6] Portfolio investiment 308.9 13.5 [6.1] Equily securities -304.1 223 4 [6.2] Deht securities 481.3-209.9 [6.3] Derivatives, net 131.7 [7] Other Investment 456.4-263.6 Balance on financial account [[5]+[6]+[7]] 725.2 [8] Statistical discrepancies -3.0 Overall balance 33:5 Official Reserve Account -33.5 Source: The U.S. Bureau of Economic Analysis Required: a1.…
4. Analyzing the effects of a trade deficit You have just been hired by the U.S. government to analyze the following scenario. Suppose the U.S. manufacturing industry is concerned about competition from overseas low-cost producers exporting their goods to the United States, a practice that hurts domestic producers. Lobbyists claim that implementing a tariff on imports would shrink the size of the trade deficit. The following exercise will help you to analyze this claim. The following graph shows the demand and supply of U.S. dollars in a model of the foreign-currency exchange market. Shift the demand curve, the supply curve, or both to show what would happen if the government decided to implement the tariff. Supply Demand -- Supply EXCHANGE RATE (Units of foreign currency per dollar) Demand
Exports of goods and services 1,872 Imports of goods and services 2,375 Net unilateral transfers -99 Net Investment Income 170 Capital Account -7 Net US acquisition of financial assets 958 Net US incurrence of liabilities 1,391 Net financial derivatives -14 Based on the table above, the balance on the current account is Group of answer choices 673 503 -432 -447 -503
QUESTION 12 Table 1 shows the summary of China's balance of payments and net international investment position. Please mark the only INCORRECT statement about Table 1. Source: IMF BALANCE OF PAYMENTS (Percent of GDP) Current account balance Trade balance Services balance Net international investment position Gross official reserves (billions of U.S. dollars) Table 1. China: Selected Economic Indicators¹ 2017 2018 2016 1.7 4.4 -2.1 17.7 3,098 1.5 3.9 -2.1 -2.1 16.8 15.2 3,236 3,168 0.2 27 2019 2020 0.7 1.8 2.7 3.5 -1.8 -1.0 16.0 14.5 3,223 3,357 2021 1.6 3.0 -0.7 13.8 3,448 2022 1.5 2.7 -1.0 14.0 3,696 China's low stock of gross official reserves suggests that the nation is vulnerable to a balance of payment crisis and a large a. devaluation of the CNY b. China's large NIIP should be consistent with the fact that it supplies capital and invests in the rest of the world c. The fact that China has a large and positive NIIP position means that the has relatively high savings rates d. China…
Question Help The table gives some information about Canada's international transactions in 2013. Billions of dollars Item Calculate the balance on the three balance of payments accounts. Imports of goods and services Net foreign investment in Canada Exports of goods and services 598 Was Canada a net borrower or a net lender in 2013? Explain your answer. 65 566 >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. Net interest income 26 Net transfers - 2 The current account balance is 8 billion dollars. Statistical discrepancy The capital and financial account balance is bill'on dollars. Enter your answer in the answer box and then click Check Answer.
Using the information in the following table on Mexico’s 1996 international transactions to answer the questions (amounts are in U.S. dollar values in millions): Merchandise Imports $89,469 Merchandise Exports $96,000 Services Exports $10,901 Services Imports $10,819 Investment Income receipts $17,099 Unilateral Transfers $ 4,531 Given the information above, what is the balance of trade? What is the current account? Did Mexico become a larger international debtor during 1996?
China's (Mainland) Balance of Payments. Use the following balance of payments data for China (Mainland) from the IMF Does China's BOP balance in years 2007, 2010, and 2015? China's BOP in year 2007 was (in millions) $_________ (Round to the nearest integer and enter any deficit with a negative sign.) Does China's BOP balance in year 2007? (Select from the drop-down menu.) China's BOP in year 2010 was (in millions) $___________ (Round to the nearest integer and enter any deficit with a negative sign.) Does China's BOP balance in year 2010? (Select from the drop-down menu.) China's BOP in year 2015 was (in millions) $__________ (Round to the nearest integer and enter any deficit with a negative sign.) Does China's BOP balance in year 2015? (Select from the drop-down menu)
International Transaction Amount, Billions of $ Services imports -150 Merchandise exports 100 Unilateral transfers (net) -20 Merchandise imports -210 Services exports 200 Income receipts/payments (net) 65 The table above gives hypothetical figures for the U.S. balance of payments. The country’s current-account balance shows a Group of answer choices deficit of $20 billion surplus of $15 billion deficit of $15 billion surplus of $10 billion
Goods imports 635 Goods exports 419 Services imports 144 Services exports 215 Net unilateral transfers -35 Investment income received 278 Investment income paid 225 Capital account -3 Net US acquisition of financial assets 84 Net US incurrence of of liabilities 158 Net change in financial derivatives -21 Statistical discrepancy Based on Table 9.2, this country is currently running a Group of answer choices balance of goods of 216 current account deficit of 92 balance of services of -71 current account deficit of 127
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