QUESTION 1 S+M $75 50 $120 200 240 320 GDP In equilibrium in the above private open economy: O exports exceed imports. O a balance of payments surplus exists. O imports exceed exports. O net exports are a positive amount.
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- In a country, private savings equals 600, the government budget surplus equals 200, and the trade surplus equals 100. What is the level of private Investment in this economy?If domestic Investment increases, and there is no change in the amount of private and public saving, what must happen to the size of the trade deficit?If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?
- What determines the size of a countrys trade deficit?Suppose there is a reduction in foreign output, Y*. This reduction in Y* will cause which of the following in the domestic country?a reduction in outputa reduction in consumptiona reduction in net exportsall of the abovenone of the aboveIf the value of goods and services that Australia purchases from the United States are less than the value of goods and services that the United States purchases from Australia, then the United States has a. positive net exports with Australia and a trade surplus with Australia. b. positive net exports with Australia and a trade deficit with Australia. c. negative net exports with Australia and a trade surplus with Australia. ar negative net exports with Australia and a trade deficit with Australia.
- 16. The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariffwill reduce South Africa's trade deficit A Because exports will be promoted and imports cannot possibly changeB Because imports will be reduced and exports cannot possibly changeC Only if the tariff has no impact on South Africa's spending or incomeD Only if the tariff leads to increased income in South Africa relative to its spending19. In balance-of-payments accounting, the sale of a foreign production facility by a SA firm is a item in the SA balance of payments; the deposit of funds in a foreign bank account by a SA citizen item in the SA balance of payments. Debit; also is a debit Debit; is a credit Credit, is a debit Credit also is a credit 20. The table below shows a section of the national accounts for a small country in 2018. Answer the question that follows using the information provided in the table. Consumption expenditure Government expenditure 9 800 3 500 Depreciation 500 2 200 Exports Imports Gross capital formation (investment) Primary income payments Primary income receipts 1900 2 500 300 200 The value of Gross Domestic Product (GDP) is: A 16 100 B 19 900 16 600 15 600 A,Question 12 Other things equal, which of the statements below is false? O a. A trade deficit will keep GDP constant if all imported goods and services are sold at cost in the domestic economy O b. A trade deficit will increase GDP if all imported goods and services are sold at below cost in the domestic economy Oc. A trade deficit will decrease GDP if all imported goods and services are sold at below cost in the domestic economy O d. A trade deficit will increase GDP if all imported goods and services are sold at above cost in the domestic economy rornonse
- Please no written by hand and no emage Consider an open economy, where the goods market is in equilibrium when the domestic output equals the domestic and foreign demand for domestic goods. a. Variable Behavioral equations ($) Exports 0.3Y*-200e Imports 0.1Y+300e Real exchange rate 0.45 Total output 1,000 Foreign output 500 Savings 9,44Yd+300 Taxes 0.25Y Government spending 400 Investment 1,000 Net income from abroad 0.1NX Net transfers from abroad 100 b. If there is an improvement in the government budget balance by 4% the country will witness a () and this increased current account balance would be. If a US resident spends $1,000 to buy €880 worth of French burgundy wine, the US balance of payments shows… a) current acct imports of -$1,000 and capital acct exports of +€880 b) current acct imports of -€880 and capital acct exports of -$1,000 c) current acct imports of -$1,000 and capital acct exports of +$1,000 d) capital acct exports of +$1,000 and capital acct imports of -$1,000.Question 68 The great country of Naboombu has private savings of $700 billion, investment of $800 bilion, tax revenue of $5s00 billion, and ment expenditures of $350 billion. What is the trade balance, does the country have a trade surplus or deficit, and is the net lender or borrower international (respectively)? the trade balance is $50 billion, the country has a trade surplus, and the country is a net borrower internationally O the trade balance is S-150 billion, the country has a trade deficit, and the country is a net lender internationally the trade balance is $50 billion, the country has a trade surplus, and the country is a net lender internationally x the trade balance is $-50 billion, the country has a trade deficit, and the country is a net borrower internationally