Balance of payment for domestic and foreign country.

Question

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Answer 1

Question

Chapter 17, Problem 2QAP

To determine

To find:Balance of payment for domestic and foreign country.

Expert Solution & Answer

Explanation of Solution

Balance of payment account for the domestic country is as follow:

$100 for the purchasing of oil is considered as an import.
$25 spent by foreign tourist is an export.
$15 is the dividend paid is investment income paid.
$25 paid to foreign charities is a transfer income to the other country.
$65 is domestic business borrowings leads to increase of assets held by foreign country in domestic country.
$15 is domestic bonds leads to increase of assets held by foreign country in domestic country.
Foreign bonds of $50 were sold which leads to fall in assets of domestic holdings.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 1

Balance of payment account for the foreign country is as follow:

$100 for the purchasing of oil is considered as an export.
$25 spent by foreign tourist is an import.
$15 received by investors is investment income received.
Payment of $25 to foreign charities is a net transfer received by the foreign economy.
Foreign business lending of $65 increases domestic holdings of foreign assets.
Purchasing of domestic government bonds of $15 increases domestic holdings of foreign assets.
The purchase of $50 of domestic government bonds is an increase in foreign holdings of done.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 2

Economics Concept Introduction

Introduction:

Current account balance is the inflow and outflow of goods and service and transfer payments. It is one of the components of balance of payments.

Balance of payments is the record of all economic transactions of one country with rest of the world.

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Answer 2

Question

Chapter 17, Problem 2QAP

To determine

To find:Balance of payment for domestic and foreign country.

Expert Solution & Answer

Explanation of Solution

Balance of payment account for the domestic country is as follow:

$100 for the purchasing of oil is considered as an import.
$25 spent by foreign tourist is an export.
$15 is the dividend paid is investment income paid.
$25 paid to foreign charities is a transfer income to the other country.
$65 is domestic business borrowings leads to increase of assets held by foreign country in domestic country.
$15 is domestic bonds leads to increase of assets held by foreign country in domestic country.
Foreign bonds of $50 were sold which leads to fall in assets of domestic holdings.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 1

Balance of payment account for the foreign country is as follow:

$100 for the purchasing of oil is considered as an export.
$25 spent by foreign tourist is an import.
$15 received by investors is investment income received.
Payment of $25 to foreign charities is a net transfer received by the foreign economy.
Foreign business lending of $65 increases domestic holdings of foreign assets.
Purchasing of domestic government bonds of $15 increases domestic holdings of foreign assets.
The purchase of $50 of domestic government bonds is an increase in foreign holdings of done.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 2

Economics Concept Introduction

Introduction:

Current account balance is the inflow and outflow of goods and service and transfer payments. It is one of the components of balance of payments.

Balance of payments is the record of all economic transactions of one country with rest of the world.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 17, Problem 2QAP

To determine

To find:Balance of payment for domestic and foreign country.

Expert Solution & Answer

Explanation of Solution

Balance of payment account for the domestic country is as follow:

$100 for the purchasing of oil is considered as an import.
$25 spent by foreign tourist is an export.
$15 is the dividend paid is investment income paid.
$25 paid to foreign charities is a transfer income to the other country.
$65 is domestic business borrowings leads to increase of assets held by foreign country in domestic country.
$15 is domestic bonds leads to increase of assets held by foreign country in domestic country.
Foreign bonds of $50 were sold which leads to fall in assets of domestic holdings.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 1

Balance of payment account for the foreign country is as follow:

$100 for the purchasing of oil is considered as an export.
$25 spent by foreign tourist is an import.
$15 received by investors is investment income received.
Payment of $25 to foreign charities is a net transfer received by the foreign economy.
Foreign business lending of $65 increases domestic holdings of foreign assets.
Purchasing of domestic government bonds of $15 increases domestic holdings of foreign assets.
The purchase of $50 of domestic government bonds is an increase in foreign holdings of done.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 2

Economics Concept Introduction

Introduction:

Current account balance is the inflow and outflow of goods and service and transfer payments. It is one of the components of balance of payments.

Balance of payments is the record of all economic transactions of one country with rest of the world.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 2QAP

To determine

To find:Balance of payment for domestic and foreign country.

Expert Solution & Answer

Explanation of Solution

Balance of payment account for the domestic country is as follow:

$100 for the purchasing of oil is considered as an import.
$25 spent by foreign tourist is an export.
$15 is the dividend paid is investment income paid.
$25 paid to foreign charities is a transfer income to the other country.
$65 is domestic business borrowings leads to increase of assets held by foreign country in domestic country.
$15 is domestic bonds leads to increase of assets held by foreign country in domestic country.
Foreign bonds of $50 were sold which leads to fall in assets of domestic holdings.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 1

Balance of payment account for the foreign country is as follow:

$100 for the purchasing of oil is considered as an export.
$25 spent by foreign tourist is an import.
$15 received by investors is investment income received.
Payment of $25 to foreign charities is a net transfer received by the foreign economy.
Foreign business lending of $65 increases domestic holdings of foreign assets.
Purchasing of domestic government bonds of $15 increases domestic holdings of foreign assets.
The purchase of $50 of domestic government bonds is an increase in foreign holdings of done.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 2

Economics Concept Introduction

Introduction:

Current account balance is the inflow and outflow of goods and service and transfer payments. It is one of the components of balance of payments.

Balance of payments is the record of all economic transactions of one country with rest of the world.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 2QAP

To determine

To find:Balance of payment for domestic and foreign country.

Expert Solution & Answer

Explanation of Solution

Balance of payment account for the domestic country is as follow:

$100 for the purchasing of oil is considered as an import.
$25 spent by foreign tourist is an export.
$15 is the dividend paid is investment income paid.
$25 paid to foreign charities is a transfer income to the other country.
$65 is domestic business borrowings leads to increase of assets held by foreign country in domestic country.
$15 is domestic bonds leads to increase of assets held by foreign country in domestic country.
Foreign bonds of $50 were sold which leads to fall in assets of domestic holdings.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 1

Balance of payment account for the foreign country is as follow:

$100 for the purchasing of oil is considered as an export.
$25 spent by foreign tourist is an import.
$15 received by investors is investment income received.
Payment of $25 to foreign charities is a net transfer received by the foreign economy.
Foreign business lending of $65 increases domestic holdings of foreign assets.
Purchasing of domestic government bonds of $15 increases domestic holdings of foreign assets.
The purchase of $50 of domestic government bonds is an increase in foreign holdings of done.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 2

Economics Concept Introduction

Introduction:

Current account balance is the inflow and outflow of goods and service and transfer payments. It is one of the components of balance of payments.

Balance of payments is the record of all economic transactions of one country with rest of the world.

Answer 6

Chapter 17, Problem 2QAP

To determine

To find:Balance of payment for domestic and foreign country.

Expert Solution & Answer

Explanation of Solution

Balance of payment account for the domestic country is as follow:

$100 for the purchasing of oil is considered as an import.
$25 spent by foreign tourist is an export.
$15 is the dividend paid is investment income paid.
$25 paid to foreign charities is a transfer income to the other country.
$65 is domestic business borrowings leads to increase of assets held by foreign country in domestic country.
$15 is domestic bonds leads to increase of assets held by foreign country in domestic country.
Foreign bonds of $50 were sold which leads to fall in assets of domestic holdings.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 1

Balance of payment account for the foreign country is as follow:

$100 for the purchasing of oil is considered as an export.
$25 spent by foreign tourist is an import.
$15 received by investors is investment income received.
Payment of $25 to foreign charities is a net transfer received by the foreign economy.
Foreign business lending of $65 increases domestic holdings of foreign assets.
Purchasing of domestic government bonds of $15 increases domestic holdings of foreign assets.
The purchase of $50 of domestic government bonds is an increase in foreign holdings of done.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 2

Economics Concept Introduction

Introduction:

Current account balance is the inflow and outflow of goods and service and transfer payments. It is one of the components of balance of payments.

Balance of payments is the record of all economic transactions of one country with rest of the world.

Answer 7

Chapter 17, Problem 2QAP

To determine

To find:Balance of payment for domestic and foreign country.

Answer 8

Expert Solution & Answer

Explanation of Solution

Balance of payment account for the domestic country is as follow:

$100 for the purchasing of oil is considered as an import.
$25 spent by foreign tourist is an export.
$15 is the dividend paid is investment income paid.
$25 paid to foreign charities is a transfer income to the other country.
$65 is domestic business borrowings leads to increase of assets held by foreign country in domestic country.
$15 is domestic bonds leads to increase of assets held by foreign country in domestic country.
Foreign bonds of $50 were sold which leads to fall in assets of domestic holdings.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 1

Balance of payment account for the foreign country is as follow:

$100 for the purchasing of oil is considered as an export.
$25 spent by foreign tourist is an import.
$15 received by investors is investment income received.
Payment of $25 to foreign charities is a net transfer received by the foreign economy.
Foreign business lending of $65 increases domestic holdings of foreign assets.
Purchasing of domestic government bonds of $15 increases domestic holdings of foreign assets.
The purchase of $50 of domestic government bonds is an increase in foreign holdings of done.

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition), Chapter 17, Problem 2QAP , additional homework tip 2