Capital account surplus indicates that the country is net creditor in the world.True or False? Explain.

Q: If the U.S. dollar appreciates and prices remain the same at home and abroad, foreign goods become…

A: Answer to the question is as follows :

Q: A surplus on the current account of the balance of payments indicates that:  (1) Financial inflows…

A: Current Accounts of Balance of Payment is one of the components of  BOPs its records all transaction…

Q: The U.S. economy is growing faster than that of Japan. The faster growth rate in the U.S. should…

A: Economy- It means managing available resources carefully.

Q: Capital account surplus indicates that the country is net creditor in the world. True or False?…

A: Balance of payment records all the transaction between domestic country and the rest of the world.…

Q: Explain why a stronger dollar could enlarge the U.S. balance-of-trade deficit. Explain why a weaker…

A: Balance of trade deficit refers to the situation of excess imports in the country over the exports…

Q: True or False: While the purchasing power parity concept is interesting, it doesn't give us a good…

A: The purchasing power parity theory states that the value of goods and services in two different…

Q: Which of the following increases the supply of foreign exchange? a. Investments of capital in…

A: Investment in foreign country increases the demand for foreign currency, and increases the supply of…

Q: A fixed exchange rate system encourages speculators to attack weaker currencies. True False

A:

Q: 1) When a country realizes a deficit on its current account: a. It realizes an excess of imports…

A: The balance of payments would involve the record of transactions which are involved in the…

Q: The is the difference between money flowing into a country from exports, and money leaving the…

A: Answer: Correct option: E (Balance of payments) Explanation: Balance of payments shows the…

Q: Nation’s exchange rate value for its currency in foreign exchange markets.  A nation's balance of…

A: The exchange rate is the rate at which the currency of a nation is traded for the currency of…

Q: Who would demand U.S. dollars in the foreign exchange market? U.S. firms and households wishing to…

A: Foreign Exchange Market: The foreign exchange market can be defined as an  institution which…

Q: Balance of payments includes foreign borrowing and lending, foreign aid, and investments. ) a) True…

A: Balance of payments is the records of monetary transaction incurred between nations during the year…

Q: Describe two measures that can used by the government to correct a deficit on the current account of…

A: Balance of payment: The balance of payments is a database of all foreign trade and financial…

Q: if US citizen decides to consume less and save more, then the foreign-exchange price of the dollar…

A: Exchange rate is the rate at which the nation's currencies are exchanged.  And it is determined at…

Q: A new country has been established on the moon and created a currency called cheesybits. Which of…

A: Answer: A transaction will be called a foreign exchange transaction if buyers and sellers are from…

Q: In reality the balance of payments may not balance due to      A) net trading by the Bank of…

A: Answer: Balance of payment records all the transactions that take place between the residents of a…

Q: Suppose there is a real depreciation of the domestic currency. This real depreciation will cause:an…

A: Currency represents the country's value during the trade between the markets. During an…

Q: Define purchasing power parity. What is the importance of purchasing power parity when you are…

A: Purchasing Power Parity(PPPs) are the currency conversion rates that try to equalize the purchasing…

Q: A surplus in a country's financial/capital account necessarily means a recessionary economy a…

A: Basics:- Capital account of the country shows net flow of funds of country. Inflows of funds means…

Q: Identify FOUR (4) characteristics of the foreign exchange market that makes it unique from other…

A: A foreign exchange market is a market where currencies are bought and sold.

Q: Which of the following is one of the indicators of a rising balance of payments deficit? Multiple…

A: Answer: A balance of payment deficit arises when a country imports more than its exports. The…

Q: country with current account deficit indicates a sign of weakness while a country with current…

A: Actually, current account deficits are not in every case terrible, and nor are current account…

Q: How do automatic adjustment mechanisms operate to correct a deficit in the balance of payments under…

A: The rectification of BOP imbalance is a fundamental priority for the country who experiences it. In…

Q: Which of the following are parts of the Financial Account of the Balance of Payments? Answers:…

A: The balance of payment in the record of all economic transaction of the country with the rest of the…

Q: In 2019 Country A had a current account deficit of $1.2 billion. CountryA's capital account was in a…

A: Current Account is the account which show the value of export and imports done by country in a…

Q: (D). A current account deficit (CA Y) and national saving is less than investment spending (S < I).…

A: Current Account Deficit measures the trade value of a country, where the goods and services that are…

Q: A Current account deficit often raises the opposition of protectionists who think that a current…

A: There are other points of disagreement, including the definition of a current account deficit or…

Q: The difference between between exports and imports of goods/services forms the current account of…

A: Balance of payments is the statement of transactions of a country trade with rest of the world.…

Q: If the US dollar appreciated against the Japanese yen what would you expect to happen to US net…

A: In the flexible exchange rate system, when the value of domestic currency increases in terms of…

Q: The current account includes changes in a. net exports, net foreign investment income, and import…

A: Trade means the exports and imports of goods and services. It means the net exports are positive if…

Q: If our (U.S.) current account is in deficit we are buying foreign financial assets…

A: A country needs to fund its excess of exports over imports; a capital account surplus must always…

Q: Based on the table below, which of the following is likely to be true? a. From the first period to…

A: I the mentioned question, we have to answer as per the data present in the table. Lets discuss one…

Q: In the balance of payments, a current account deficit is balanced by a capital account surplus. True

A: Balance of payments (BOP) is a record of transactions made between residents of a country and the…

Q: What is the meaning of a surplus (deficit) on the current account balance? What economic…

A: Current Account Balance A balance of payment is a statement that records all the transactions of a…

Q: (Income Identity) Y = C+I+G+ NX Y = 6,000 G = 1,200 T = 1,000 C = 250+0.75(Y –T) 1 = 1,000 – 100r NX…

A: The Given Informations are Y=C+I+G+NX C= 250+0.75(Y-T) Y=6000 G= 1200 T=1000 I= 1000-100r…

Q: A country finds itself in the following situation: a government budget deficit of $700; total…

A: ANSWERThere are two main sources for the supply of financial capital in the U.S. economy: saving by…

Q: How does each of the following changes affect the real gross domestic product and price level of an…

A: Because of depreciation of currency,exports increases,due to which domestic production increases and…

Q: Given the following information: Unilateral transfers: $120 billion, Exports in goods: $1,000…

A: Balance of payment - It is a statement of account of all economic transactions of one nation with…

Q: Suppose a country exports $60 million worth of goods and services, while it imports $50 million…

A: The term GDP means the aggregate total output produced by a country in the current year. This…

Q: The capital account balance is a nation's:    net investment income minus its net transfers…

A: The capital account is one of the components of the balance of payments account for a country. The…