The following Figure 1 is an edited version of an image discussed during the course. Use it to briefly explain how the balance of payments works. Give examples (they do not need to be only about this specific figure). Figure 1 - Current Account TRADE IN GOODS -$887 BILLION +260 TRADE IN SERVICES , Income on investments abroad is a positive ... +137 . but overall, these add up to a substantial "current account" deficit, -491 OUT: U.S.-PURCHASED | IN: FOREIGN-PURCHASED FOREIGN ASSETS U.S. ASSETS Financial Account CAPITAL FLOWS IN +66 -311 +736 OTHER +491 By The New York Times | Source: Bureau of Economic Analysis

The following Figure 1 is an edited version of an image discussed during the course. Use it to briefly explain how the balance of payments works. Give examples (they do not need to be only about this specific figure). Figure 1 - Current Account TRADE IN GOODS -$887 BILLION +260 TRADE IN SERVICES , Income on investments abroad is a positive ... +137 . but overall, these add up to a substantial "current account" deficit, -491 OUT: U.S.-PURCHASED | IN: FOREIGN-PURCHASED FOREIGN ASSETS U.S. ASSETS Financial Account CAPITAL FLOWS IN +66 -311 +736 OTHER +491 By The New York Times | Source: Bureau of Economic Analysis

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 46P: Imagine that the economy of Germany finds itself in the following situation: the government budget...

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