Alpha’s balance-of-payments data for 2016 are shown below. All figures are in billions of dollars. What are the (a) balance on goods, (b) balance on goods and services, (c) balance on current account, and (d) balance on capital and financial account? Goods exports$+40Goods imports-30Service exports+15Service imports-10Net investment income-5Net transfers+10Balance on capital accountForeign purchases of Alpha assets+20Alpha purchases of assets abroad-40

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

Goods exports $+40 Goods imports -30 Service exports +15 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

Goods exports $+40 Goods imports -30 Service exports +15 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

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 1QR

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Question

Alpha’s balance-of-payments data for 2016 are shown below. All figures are in billions of dollars. What are the (a) balance on goods, (b) balance on goods and services, (c) balance on current account, and (d) balance on capital and financial account?

Goods exports
$+40
Goods imports
-30
Service exports
+15
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

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