8. In a magical kingdom, the leakages were equal to 100 in 2019. In the same year, government expenditures and investments were both equal to 75. What are the net foreign investments for this magical kingdom?

Q: 3. Describe briefly and clearly (need to use examples or modeling) whether expansionary monetary…

A: Macroeconomics refers to a part of economics that deals with production, decision & allocation…

Q: (a) Did the Rand appreciate or depreciate against the GBP in 2016? (b) Did the Rand appreciate or…

A: Since you have asked multiple sub-parts in a question, we will answer only the first three sub-parts…

Q: 2019, Sydney purchased $10,000 worth of Chinese securities at 6.40 CNY per $USD with an expected…

A: The exchange rate determines the price of the currency of a domestic country when it is exchanged…

Q: 16. Explain why net exports and the real exchange rate have an inverse relationship. Why do NXs…

A: Relationship between real exchange rate and net export:- The price level of items at domestic nation…

Q: 5. The following graph assumes that the 1-year interest rates are equal to 4% in both countries (R =…

A: Interest rate is 4% The anticipated real returns curve, often known as the parity curve, can be used…

Q: The role of the European Investment Bank as an institution of economic convergence between European…

A: answer     the European Investment Bank (EIB) helps the European Union achieve its goals. It funds…

Q: Assume that a Japanese citizen decide to borrow 5000 JPY (Japanese Yen) in order to buy Mexican…

A: Exchange rate is the rate at which one currency's value can be converted into another country's…

Q: What are the three categories of transactions in the balance of payments? Give an example of each.

A: An economic transaction between the residence of one country and the rest of the world during a…

Q: Please discuss the following. 1. Financial markets are institutions and systems that facilitate…

A: The term "financial market" refers to a place or platform where stocks, bonds, currencies, and other…

Q: 3. Explain the relationship between a current account deficit or surplus and the flow of funds.

A: Current account of the country shows a deficit when the country in engaged in importing more goods…

Q: 9. If the central banks sells bonds in the open market, net exports will increase. Answer: Reason:

A: The sale of domestic goods and services on the international market is referred to as exporting.…

Q: 3. Suppose a Canadian agent (investor) with C$1.0 million is choosing between bank deposits…

A: As bartleby guidelines only first 3 part answer..

Q: The following are the items in the UK’s 2014 balance of payments (£ billions) Exports of…

A: Balance of trade in goods and services can be calculate as: Exports of goods and services-Import of…

Q: 1. Would each of the following groups be happy or unhappy if ringgit appreciated? Explain. A) Hong…

A: Hi and thanks for your question! As per our Honor code, we are allowed to attempt only first…

Q: Suppose in a small open economy, real GDP is $500 billion, consumption is $300 billion, investment…

A: real GDP is $500 billion, consumption is $300 billion, investment is $120 billion, government…

Q: 3. You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the…

A: Net foreign investment = Earning on foreign investment - foreign earnings on amagre investment

Q: Discuss the interrelation between the expected foreign exchange rate and current export and import…

A: Foreign exchange rate shows the value of one currency in terms of other currency in the foreign…

Q: Show the relationship between private saving, public saving, investment, and the current account. If…

A: In economics, a country's national saving is the sum of private and public saving. It equals a…

Q: 4. On December 28, 2020, the U.S. Dollar (USD) / Euro (EUR) exchange rate was 1 USD 0.82 EUR. (a)…

A: exchange rate is the rate at which country exchange their currency with other country , here we…

Q: Consider that a country is a net lender. a) Draw the graph to present net exports. Describe the…

A: GDP is the sum of the market value of all final goods and services produced within the domestic…

Q: 11. Suppose there are three adjacent countries maintaining their closed economic borders, i.e.…

A: The excess of government expenditure over government revenue is the government budget deficit.…

Q: 11-) Question: Suppose that a box of ice cream costs €4 in the United Kingdom and the nominal…

A: Exchange rate refers to the amount of domestic currency that required to purchase one unit of…

Q: What are foreign bonds? Explain the function of Global Capital Market.

A: A foreign bond is a bond given in a homegrown market by a foreign substance/entity in the homegrown…

Q: * Why do governments try to sometimes depreciate their exchange rate during recessions? Can this…

A: Governments are important for an economy. The role of government might be different in different…

Q: ollowing are the items in the UK’s 2014 balance of payments (£ billions) Exports of…

A: Direct investment is considered a long-term investment in the economy of a country, whereas…

Q: Pangea has $ 500 billion in National Savings and $ -100 billion in Public Savings. What is Pangea's…

A: According to the national income accounting-National saving is equal to the income that remains…

Q: Suppose that the long term interest rate is decreasing since there is an expectation that the…

A: If interest rate is falling, foreign investment in the country will decrease, which will decrease…

Q: 3. How does increased foreign demand for US government bonds affect the foreign exchange

A: Foreign exchange rate is the rate at which one currency is exchanged for the other however there may…

Q: Consider a hypothetical open economy. The following table presents data on the relationship between…

A: An open economy represents that economy that establishes contact with the rest of the world in terms…

Q: 6. Define the terms "net exports" and "net capital outflow". How are the two variables related in an…

A: Answer: Introduction: Net export: it refers to the difference between export and imports of a…

Q: 1) If a country is a big exporter, is it more exposed to global financial crises?

A:

Q: If the economy enters a recessionary gap, then incomes in the economy decrease, which reduce income…

A: Increase in the U.S budget deficit means the expenditures of the U.S are greater than the revenues…

Q: 2) Exchange rates and interest rates are connected through the parity conditions. Let the New…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Consider a hypothetical open economy. The following table presents data on the relationship between…

A: The loanable funds market refers to the market in which funds are traded for each other, primarily…

Q: Exercise 1.7 Indicate whether the statement is true, false, or uncertain and explain why. 1. The net…

A: We are going to discuss Current Account and Capital account theories to answer this question.

Q: Suppose you observe the following exchange rates and interest rates for the USD and JPY:     Bid…

A: Lending rate can be calculated by using the following formula.

Q: What is the connection between the Higher net income of central bank ang foreign exchange gains?

A: In an economy, the Central Bank earns profit by making lending activities and this net income can be…

Q: 4. Net capital outflow and net exports An open economy interacts with the rest of the world through…

A: Given; Net capital outflow= Export A trendy boutiques in Bangkok purchased entire inventory of a…

Q: Economics Consider a hypothetical open economy. The following table presents data on the…

A: The supply(ss) of loanable funds comes from the national-savings either from the private (that…

Q: 19. Suppose consumers decide to save a smaller proportion of their income. What are the implications…

A: Savings are the most important sources by which a government invests in the buildup of the economy…