China had a $214 billion overall current account surplus in 2012. Assuming that China’s net debt forgiveness was zero in 2012 (its capital account balance was zero), by how much did Chinese purchases of financial and real assets abroad exceed foreign purchases of Chinese financial and real assets

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: Now consider a small open economy, assuming domestic output is held constant and the country…

A: A small open economy's currency is impacted heavily by capital flows.

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: Which of the following transactions represents a deficit in the current account of the U.S. balance…

A: Balance of payments: It refers to the difference between the money which is coming in the economy…

Q: Comment on the following statement: "Since the United States imports more than it expona. It is…

A: The balance of payment (BOP) is the financial statement of a country which includes all its…

Q: Alpha’s balance-of-payments data for 2008 are shown below. All figures are in billions of dollars.…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: In a fixed exchange rate regime, which of the following policies could lead to a greater trade…

A: Devaluation of currency refers to the act in which the government of a country decreases the value…

Q: Suppose that a nation has a current account deficit of 80 million dollars and a financial account…

A: PART 1 The balance of payments is a statement that looks at all transactions in the economy as well…

Q: Explain why a nation with a current account deficit is a net external borrower, while a nation with…

A: The account that represents exports and imports of goods and services of countries is known as the…

Q: The US is the world’s largest net debtor nation. What will happen to the US net International…

A: The difference between a country's stock of foreign assets and a foreigner's stock of those assets…

Q: In the balance of payments statement, a current account surplus will be matched by a    capital and…

A: The Balance of Payment record the transactions in services, goods, and assets between residents of a…

Q: What do the plus signs and negative signs signify in the U.S. balance-of-payments statement? Which…

A: The balance of payment (BOP) includes the inflow and outflow of capital related to the country. It…

Q: Explain, with the aid of a graph, the effect on the rand/dollar exchange rate and the equilibrium…

A: The exchange rate communicates the bilateral price of the foreign currency in terms of the home…

Q: Q2-9 The shape of the curve that shows the effect of currency depreciation upon a country's current…

A: The depreciation of any country's money will prompt a fall yet to be determined of exchange at first…

Q: Consider an economy that lasts for two periods, period 1 and period 2. Let T B1 denotes the trade…

A: Given, CAt = rB∗ t−1 + T Bt (1) and CAt = B ∗ t − B ∗ t−1 (2)

Q: If the indirect quote for the exchange rate between the US Dollar ($) and Japanese Yen (Y) is…

A: The direct quote of the exchange rate is that when we express the foreign currency in terms of…

Q: Which of the following measures would best rectify a deficit on a country's Balance of Payments…

A: Deficit on a country's balance of payments refers to when the imports of a country is greater than…

Q: Consider an economy that begins with both internal and external balance. What would happen if the…

A: It would develop an excessively large current account deficit with excessive unemployment. This is…

Q: Which of the following transactions is included in the current account balance of the BOP statement…

A: Balance of Payment (BOP) is a statement of the record of all economic transactions of a country with…

Q: Briefly define the current account, capital/financial account and official settlements account of a…

A: Balance of payment is the accounting records of all monetary transaction occured between nations .…

Q: The American company Boeing sells an airplane to a Japanese airline. As a result, the US current…

A: When country import from other country then their current decreases and when the country is export…

Q: Other fundamental things equal, an increase in the exchange rate value of the domestic currency will…

A: The current account is the balance of trade reflecting all the payments made for goods, services,…

Q: Suppose that a country with pegged exchange rate has reserves of $8 billion and is running a deficit…

A: Given Foreign exchange reserves = 8 Billion $ Current account deficit = 1 Billion per month…

Q: ) Which one of the following is a balance of payments account? A) current account B) borrowing…

A: The balance of payments is a record of a nation's monetary transactions with the rest of the world…

Q: exports contracts are denominated in foreing currency imports contracts are denominated in foreing…

A: Trade balance is obtained from difference of a country's exports and imports. Trade balance =…

Q: INSTRUCTIONS: For each of the following, explain the effect on a) current account OR capital account…

A: The nations around the globe are involved in the trading activities with each other. The nations…

Q: When you write an exchange rate in terms of how many units of a foreign currency it takes to buy one…

A: A direct quote depicts the amount of foreign currency that can be bought for a certain unit of the…

Q: China had a $372 billion overall current account surplus in 2007. Assuming that China’s net debt…

A: The current account computes the import and export of services and commodities of a country over the…

Q: "If monetary policy is used to set the market equilibrium value of the exchange rate equal to the…

A: Market equilibrium value of the exchange rate is the equilibrium point where the demand and supply…

Q: What could importers such as the Chinese airlines have done to limit the negative impact of a…

A: A reduction within the value of a currency in terms of its rate versus other currencies is…

Q: Suppose that during a recent year for the United States, merchandise imports were $2 trillion,…

A: Merchandise Trade Balance = Merchandise Exports - Merchandise Import If the Merchandise imports are…

Q: In the balance of payments statement, a current account surplus will be matched by a   capital and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Comparison of Global Current Account surpluses (green and blue bars) and Global Current Account…

A: ANSWER   The symmetry in the chart can be described by the concept of international trade or Open…

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: Ricardian equivalence suggests that government budget deficits generated by decreases in current…

A: Current account:- it is a record of a country's transactions of goods and services, net earnings on…

Q: Comment on the folllowing statement "Since the United States imports more than it exports it is…

A: Capital account and Current account Answer: Capital account and current account are the important…

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: 2-16 In a system of fixed exchange rates, the automatic balance-of-payments adjustment process for a…

A: *Answer:

Q: Alpha’s balance-of-payments data for 2016 are shown below. All figures are in billions of dollars.…

A: Balance of good shows the performance of an economy with respect to its trade of goods with foreign…

Q: As domestic currency appreciates, we would expect   a. Trade deficit to decrease.   b. Trade deficit…

A: Appreciation of the currency refers to the increase in the price of the currency in terms of other…