Goods exports $+40 Goods imports - 30 +15 Service exports Service imports - 10 Net investment income -5 Net transfers + 10 Balance on capital account Foreign purchases of Alpha assets +20 Alpha purchases of assets abroad - 40

Q: Q.1.6 A surplus on the current account of the balance of payments indicates that: (1) Financial…

A: The balance of payments records a country's monetary transactions with the rest of the world. The…

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: “According to the logic of the J-curve analysis, a country that revalues its currency should have an…

A: The J-curve describes the way that a country’s balance of trade initially worsens following a…

Q: Will exchange rates correct a balance-of-trade deficit? Consider the case of a balance-of-trade…

A: The balance of trade deficit occurs when the value of imports of a country exceeds the value of its…

Q: What kind of monetary policy can central banks carry out in the case of surplus in capital account…

A: Introduction Monetary policy will consist of the decision of the government and the central bank…

Q: Classify each of the following as debits or credits in the U.S. balance of payments.   Americans…

A: The BOP is a record or statement of the transactions of a country with the rest of the world in a…

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: In 2018, Germany had the world’s largest current account surplus of US$291 billion. Using this one…

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

Q: Look at each of the cases below from the point of view of the balance of payments for Canada.…

A: The balance of payments (BOP) is basically a record of each payment or receipt made by one…

Q: If Brazil’s current account balance is -150b and its financial account balance is +130b, what must…

A: Balance of Payment is the sum of balance of current account, capital account and financial account.…

Q: In 2020, the nation of Pecunia had a current account deficit of $900 million and a capital account…

A: Current account deficit= $900 Capital account balance=$0 Non reserve financial assets fell by= $600

Q: 6. The double-entry principle in the balance-of-payments How will the following transactions affect…

A: When talking about US balance of payment account, any inflow of cash will be recorded in the credit…

Q: Discuss whether SDRs or another Global Currency created by the IMF should replace the US Dollar as…

A: The SDR is a global save resource, made by the IMF in 1969 to enhance its part nations' true saves.…

Q: Please discuss the concept of the Balance of Payment account. Further, discuss the three components…

A: BOP keeps track of all transactions that affect a currency's demand and supply. . Assess a country's…

Q: In your opinion, does currency depreciation solve the economic problems of a country? Justify your…

A: Economic problem: It refers to the problem under which the economy has to face the problem related…

Q: - Explain very briefly about elasticity approach, national income approach, absorption approach, and…

A: Elasticity approach  The elasticity approach tries to predict the outcome policy changes will have…

Q: multiple choice question and short explanation about your answer Suppose you are wanted to make…

A: IS-LM  In the IS LM curves of equilibrium, (IS) is the goods market and (LM) is the money market.…

Q: The overall balance shows what happens to the _______ and a (+) sign implies _________ in reserves…

A: The Overall Balance shows the total International reserves when the country receives foreign funds…

Q: Exports of goods and services 1,872 Imports of goods and services 2,375 Net unilateral transfers -99…

A: The Balance of Payment(BOP) is the statement that shows the international transactions of any…

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

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

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: What were the implications of the 1998 Russian Financial Crisis on the exchange rate and currency…

A: The Foreign Exchange Rate is the rate at which one currency is exchanged for another. The foreign…

Q: As for a payment balance, Japan has $ 87 billion in the current account, $(-90) billion in the…

A: International reserves are reserves national banks exchange with one another on an international…

Q: Exports of goods and services 1,872 Imports of goods and services 2,375 Net unilateral transfers -99…

A: Given: Exports of goods and services 1,872 Imports of goods and services 2,375 Net unilateral…

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: Of the following, the one that appears in the current account of the balance of payments is…

A: Keeping track of a country's financial interactions with the rest of the world is done through…

Q: Compare and contrast the direct and indirect relationships between balance of payment and inflation…

A: Balance of payments measurements (BOP) cover an economy's exchanges with the remainder of the world.…

Q: Q.1.11 A surplus on the current account of the balance of payments indicates that: (1) Financial…

A: Q.1.11 Th e answer is - (4) Exports are greater than imports. Therefore, A surplus on the current…

Q: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit…

A: Given information:

Q: why is the current account more important in the balance of payment account

A: An objective for pretty much each country is to export product and services to spice up revenue. the…

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 it relates to the European Union, what is the ECB? The European Central Bank, responsible for…

A: The European Central Bank (ECB) is the central bank which handles the monetary policies of the…

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.