There are two large open economy. Current account balance of the home country is given by -15+30r", where rw is the world interest rate. Current account balance of the foreign country is given by 6+15rw. The equilibrium level of home current account balance is -10.5 -21 O-19.5
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- The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What percent of GDP is the current account balance?There are two large open economy. Current account balance of the home country is given by -15+30r", where rw is the world interest rate. Current account balance of the foreign country is given by 6+15pw. The equilibrium world interest rate is -20% 20% 15% -15%The table gives some information about Nordland's international transactions in 2016. Calculate the current account balance, the capital and financial account balance, and the official settlements account balance. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. GEXES The current account balance is -111 billion dollars. The capital and financial account balance is The official settlements account balance is bilion dollars. 460 billion dollars. Item Imports of goods and services Foreign investment in Nordland Exports of goods and services Nordland's investment abroad Net interest income Net transfers Statistical discrepancy Billions of dollars 1,400 1,100 1,350 600 9 -70 -40
- If the current account balance is negative and the capital account balance is zero, а. the financial account balance must be negative b. the financial account balance must be twice the current account balance C. there is net inflow of foreign investment d. there is net outflow of foreign investment е. capital inflows must be less than capital outflows Initially the exchange rate between the Australian dollar and yen is ¥80=A$1. Suppose that the exchange rate changes to ¥75 = A$1. Other things being equal, because of the change, a. Japan will import more Australian products b. Japan will import less Australian products C. Australia will import fewer Japanese products d. Both (a) and (c) are correct correct е. Both (b) and (c) are correctIn one yeer the United States had a current eccount delicit of -$358 billion, The balance on the capital account was-$5 billion. What was the balance on the financial account? Multpe Chokce $3 blion $353 bilon -$363 billon -$358 bilon -$363 was incorrect The U.S. often has a significant surplus in services trade, even though it has a deficit in goods trade. True or False True FalseHow might its balance of payments position be problematic for a country that is pegging its exchange rate? pls help asap
- Increase in interest rate in the domestic economy lets to an appreciation of domestic currency. True / FalseDonald Company, a manufacturing company based in San Juan City, Philippines, purchased raw materials from a foreigncompany denominated in foreign currency. Which of the following is correct? A. If the foreign currency appreciates, Jonald will recognize foreign exchange loss.B. If the foreign currency appreciates, Jonald will recognize foreign exchange gain.C. If the foreign currency depreciates, Jonald will recognize foreign exchange loss. D. Any gain or loss will be deferred until the date of settlement.Assuming that the Euro-U.S. dollar exchange rate is .9. If a German buys an American automobile for $30,000, then what would the automobile cost in Euros? What would the automobile cost if the dollar depreciated by 20 percent?
- The following transactions (expressed in U.S. $ billions) take place during a year. Assuming Capital account is zero. Based on it, Allocate each transaction to its account and Calculate the U.S. current-account, financial- account and the balance of payment. a. The United States exports $300 of goods and receives payment in the form of foreign demand deposits abroad. b. The United States imports $225 of goods and pays for them by drawing down its foreign demand deposits. c. The United States pays $15 to foreigners in dividends drawn on U.S. demand deposits here. d. American tourists spend $30 overseas using traveler's checks drawn on U.S. banks here. e. Americans buy foreign stocks with $60, using foreign demand deposits held abroad. f. The U.S. government sells $45 in gold for foreign demand deposits abroad. g. In a currency support operation, the U.S. government uses its foreign demand deposits to purchase $8 from private foreigners in the United States. U.S. balance of payments…Item Imports of goods and services Foreign investment in the United States Exports of goods and services U.S. investment abroad Net interest income Net transfers Statistical discrepancy Billions of U.S. dollars 2,561 955 1,853 300 121 -123 66 a. Calculate the current account balance b. Calculate the capital and financial account balance. C. Did U.S. official reserves increase or decrease? d. Was the United States a net borrower or a net lender in 2008? Explain your answer. Based on the exchange rates for the first trading days of 2013 and 2014 shown in the accompanying table, did the U.S. dollar appreciate or depreciate during 2014? Did the movement in the value of the U.S. dollar make American goods and services more or less attractive to foreigners?Calculate the current account balance of payment in national income when the trade balance are 81,000 and the invisible balance are 33,460!?