Comment on the folllowing statement "Since the United States imports more than it exports it is necessary for the United States to import capital from foreign countries to finance its current account deficits."

Q: A country finds itself in the following situation: a government budget surplus of $630; total…

A: Answer: Given, Budget surplus (or government saving) = $630 Domestic saving = $990 Investment = $900…

Q: People sometimes worry that American trade with other countries will lead to large U.S. trade…

A: The answer is - a) have both current account and financial account deficits at the same time.

Q: A Senator announces his past support for protectionism. “The U.S. trade deficit must be reduced, but…

A: When the value of total imports of the economy is substrates from the total value of the exports of…

Q: Exports S750 Imports S600 Net income from abroad -S225 Net unilateral transfers S30 Based on the…

A: Exports=$750 Imports=$600 NFIA=$-225 NT=$30

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: According to David Hume’s theory of automatic price adjustment, countries experiencing current…

A: Price specie flow mechanism: It refers to the theory under which how the trade balances can be…

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: Following an expansionary monetary policy, we would expect lower interest rates, dollar   a.…

A: Expansionary monetary policy is used when the Reserve Bank or the central bank decides to stimulate…

Q: Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors,…

A: Trade deficit refers to a situation in which the value of imports of goods and services of a nation…

Q: A country finds itself in the following situation: a government budget deficit of $1200; total…

A: In the question above, it is given : A government budget deficit of $1200 Total domestic savings of…

Q: An increase in government spending in a simple open economy leads to Fall in both budget and current…

A: With higher government spending, government's expenditure will be more than the government's revenue…

Q: You have the following annual figures for the New Zealand economy.             Investment…

A: Note:- Dear learner you have posted a question with multiple sub parts, as per our policy we have…

Q: A country finds itself in the following situation: a government budget deficit of $500; total…

A: Budget deficit = $500Domestic saving = $1310Domestic investment = $2100 Trade deficit before change…

Q: ‘According to David Hume’s theory of automatic price adjustment, countries experiencing current…

A: Price specie flow mechanism: It refers to the theory under which how the trade balances can be…

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: If Canada borrows more from the foreign countries than it lends to the foreign countries, then…

A: here we find the correct answer as follow;

Q: rise and the real exchange rate depreciates.

A: Explanation When a rise in government expenditure or a decrease in government income will increase…

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: What will happen to the US trade deficit if the US is in a recession while our trading partners are…

A: Trade deficit happens when the country’s export fell and import rises, it means the situation where…

Q: A country finds itself in the following situation: a government budget surplus of $800; total…

A: "Government;s budget surplus occurs when government savings are more than the government…

Q: United States currently runs a significant trade deficit with the rest of the world. Research an…

A: US mainly has trade relations with Canada, Mexico, China, Japan and Germany.Countries that have…

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: QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. True O…

A: The balance of trade of a country is known as the difference between the value of the country's…

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

A: A merchandise trade deficit occurs when a country imports more goods than it exports in a given span…

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: You have the following annual figures for the New Zealand economy. Investment…

A: The Saving  = Private Saving +Public Saving. The current accounts of BOP includes the net export,…

Q: An increase in government spending in a simple open economy leads to An increase in the budget…

A: Fiscal Policy  Fiscal policy refers to the policy of the government and central bank by which the…

Q: c

A: Net export refers the difference between the values of a country's exports and the values of a…

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: Suppose we are in Balance of Payment equilibrium with a trade deficit of 300. What happens to the…

A: Selling of securities recorded under the capital account. IT does not affect the trade deficit.

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: 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: 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…

Q: If US is expected to have 12 billion dollars more export and 8 billion dollars less import. How will…

A: Here, given information is: Increase in exports: 12 billion Decrease in imports: 8 billion To…

Q: a.    Does the Philippines suffer a trade surplus or trade deficit for 2020 and first nine months of…

A: The trade balance is calculated by subtracting the value of exporting goods from the value of…