The rest of the world claims 100 of debt from the country above. This is a stock variable. The country lends at 4% and borrows at 3%. These are rates of change of stocks. Use this information combined with one of the flow variables describing the country’s international transactions to find the stock of what the world owes this country. Note: no workers worked across the border. No wages flowed in, none flowed out. 125 Is the country from the previous question rich or poor? Does it enjoy the exorbitant privilege? In what important way is this country’s stock and flow of investment are different from the US?
The rest of the world claims 100 of debt from the country above. This is a stock variable. The country lends at 4% and borrows at 3%. These are rates of change of stocks. Use this information combined with one of the flow variables describing the country’s international transactions to find the stock of what the world owes this country.
Note: no workers worked across the border. No wages flowed in, none flowed out.
Is the country from the previous question rich or poor?
Does it enjoy the exorbitant privilege?
In what important way is this country’s stock and flow of investment are different from the US?
Stock Variable:
A stock variable represents a quantity of something at a specific point in time. It is a snapshot of a particular quantity at a given moment.
Flow Variable:
A flow variable represents a quantity of something per unit of time. It measures the rate at which something occurs or accumulates over time.
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