Australia has a current account surplus of $3 billion per quarter and a net income deficit of $3 billion per quarter. Which of the following is TRUE? a. The trade surplus is $6 billion per quarter b. The capital account deficit is $6 billion per quarter c. Net foreign liabilities are increasing d. All the other options
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Australia has a current account surplus of $3 billion per quarter and a net income deficit of $3 billion per quarter. Which of the following is TRUE?
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- A country finds itself in the following situation: a government budget deficit of $1200; total domestic savings of $400, and total domestic physical capital investment of $1300. According to the national saving and investment identity, if investment decreases by $300 while the government budget deficit and savings remain the same, what will be the new value of the trade deficit after investment decrease?A country finds itself in the following situation: a government budget deficit of $2400; total domestic savings of $900, and total domestic physical capital investment of $1300. According to the national saving and investment identity, if investment decreases by $600 while the government budget deficit and savings remain the same, what will be the new value of the trade deficit after investment decreases?A country finds itself in the following situation: a government budget deficit of $500; total domestic savings of $1310, and total domestic physical capital investment of $2100. According to the national saving and investment identity, if investment increases by $150 while the government budget deficit and savings remain the same, what will be the new value of the trade deficit after the change in investment?
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- You have the following annual figures for the New Zealand economy. Investment expenditure $42.5 billion Government savings -$1.7 billion The current account balance is not zero. In fact the current account deficit is $6.0 billion. What is New Zealand's actual private sector savings figure? $____billion (use 1 d.p.).The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit A. Because exports will be promoted and imports cannot possibly change B.Because imports will be reduced and exports cannot possibly change C.Only if the tariff has no impact on South Africa's spending or income D.Only if the tariff leads to increased income in South Africa relative to its spendingAssuming that a country has a trade deficit of $50 billion, which of the following is true: A. The country's exports are $120 billion and its imports are $180 billion B. The country's exports are $100 billion and its exports are $150 billion c. The country's imports are $120 billion and its exports are $180 billion d. The country's exports are $150 billion and its imports are $100
- a. Does the Philippines suffer a trade surplus or trade deficit for 2020 and first nine months of 2021? Explain.b. Does the Philippines suffer a current account surplus or current account deficit for 2020 and first nine months of 2021? c. What is the status of the Philippines Foreign Direct Investments for 2020 and first nine months of 2021? Explain. What is the status of the Philippines Foreign Portfolio Investments for 2020 and first nine months of 2021? Explain. d. What is the role of the Asia Infrastructure Investment Bank (AIIB) in the area of Global Finance? How is their financing structure different from the Asian Development Bank (ADB)?A country finds itself in the following situation: a government budget deficit of $700; total domestic savings of $1470, and total domestic physical capital investment of $2100. According to the national saving and investment identity, what is the current account deficit?People sometimes worry that American trade with other countries will lead to large U.S. trade deficits and the movement of massive amounts of American capital out of the country. This worry is unfounded because countries cannot a) have both current account and financial account deficits at the same time. b) increase savings at the same time that a trade deficit grows. c) spend more than they earn. d) invest more than they save.