two reasons: They export raw materials and export finish goods Developing economy importing machinery and other capital 2 reasons discussed above is why a country could run a trade deficit and hence be an international borrower. In which of these 2 cases should one be worried about the sustainability of the deficit and the ability of the country to pay back foreign loans in the future? Why?

two reasons: They export raw materials and export finish goods Developing economy importing machinery and other capital 2 reasons discussed above is why a country could run a trade deficit and hence be an international borrower. In which of these 2 cases should one be worried about the sustainability of the deficit and the ability of the country to pay back foreign loans in the future? Why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

What difference does it make whether a Japanese or a US citizen buys the US bonds issued to finance a government budget deficit?
An economy can run a trade deficit (have negative exports) permanently if: a. The Current and Financial account generate a net outflow of money, and the external debt does not increase as percentage of GDP. b. The level of GDP of the country is sufficiently low. c. Migration of the national labour force to overseas is allowed. d. The Current and Financial account bring enough net inflow of money, and the external debt does not increase as percentage of GDP.
9. A deficit in the financial account means that the nation has:a. imported more assets than it has exported. b. exported more assets than it has imported. c. saved more than it has invested. d. produced more than it has consumed.
3
a. In the diagram, shift the relevant curve(s) to the show the long-run effect of an increase in the trade deficit, if the accompanying capital account surplus supports investment. Price level LRAS AS X AD Price level GDP b. In the diagram, shift the relevant curve(s) to the show the long-run effect of an increase in the trade deficit, if the accompanying capital account surplus supports consumption. LRAS AS X AD GDP
help me with parts A,B,C AND explain please
2. The Table gives some information about Canada's international transactions in 2010. Item Billions of dollars. Imports of goods and services Net foreign investment in Canada Exports of goods and services. Net interest income. Net transfers Statistical discrepancy 508 54 476 16 (-3) 1 (a) Calculate the balance on the three balance of payments accounts. (b) Was Canada a net borrower or a net lender in 2010? Explain your answer.
D Question 4 If the US$ is stronger, that helps to do what in regards to the US trade deficit O Increase O Decrease O Create a balance of payments surplus O Decreases trade with the weaker currency
If a country is experiencing a budget deficit and the government reduced spending, resulting in a balanced budget. How a country’s shift from budget deficit to balanced budget would affect its investments, economic growth, net capital outflow and currency exchange rate?