How can the United States government improve the Balance of Payments in the future from 2018 to 2028?

Q: Examine how surpluses and deficits in the balance of payments (BOP) affect exchange rates.

A: Introduction - All central bank transactions are recorded in the account on the balance of payments…

Q: Why is the IMF considered as being controversial?

A: International Monetary Fund (IMF) is an apex financial institution that works on a global level to…

Q: What is one of the ways governments can influence exchange rates?

A: the government uses the exchange rate tool to achieve multiple objectives such as full employments,…

Q: What could be the measures to correct disequilibrium in the balance of payments?

A: Depreciation is a term that refers to a rise in the price of a foreign currency or a decrease in the…

Q: Why does the trade balance and the current account balance track so closely together over time?

A: Trade is the exchange of goods and services between the buyer and seller. When the buyers and…

Q: If the trade deficit of the United States increases, how is the current account balance affected?

A: Balance of payment refers to the record of the international transactions that the domestic country…

Q: What happens to the balance of trade if the nominal exchange rate depreciates?

A: According to the Marshall-Lerner condition if the exchange rate of a country depreciates it means…

Q: What does symmetrical adjustment of current account imbalances mean?

A: The Current Account is referred to as a country's exports and imports of goods and services and the…

Q: Is the Eurozone an “optimal” currency area and why, critically evaluate if possible.

A: An “optimal” currency area is characterized as one in which a single currency would create the…

Q: What effect does a high exchange rate have on imports, exports, and that country's production?

A: The rate that measures the value of a nation’s currency in terms of another nation’s currency is…

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: If a country is a big exporter, is it more exposed to global financial crisis

A: Imports are the amount spent on purchase of foreign goods. Exports are the amount spent by…

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: Choose one measures to correct disequilibrium of balance of payments and explain how it will help…

A: The balance of payments of a country is a systematic record of all economic transactions that occur…

Q: What is balance of visible items in the balance of payments account called?

A: The balance of payments account of any country contains a number of components like balance of…

Q: why is the recovery of global economy, especially the Euro Zone, so important to the South African…

A: Economy can be democratic or it can be under dictatorship or it can be communist. For example United…

Q: How do government budget deficits affect the exchange rate and trade balance?

A: The rate at which one country's currency can be exchanged for another country's currency is known as…

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

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

Q: A point to the left of the balance of payments schedule (BP curve) would represent

A: Balance of Payment is a statement in which all the financial transactions made in a certain period…

Q: difference between balance of trade and balance of payments?

A: Money has been evolved since the ancient times and currently money is used as currency. There are…

Q: How does an increase in government spending affects aggregate demand, investment, and net exports in…

A: In the small open economy, the capital inflow and outflow would have free movement because of…

Q: How do changes in exchange rates affect international trade?

A: The exchange rate is determined by the demand(DD) & supply(SS) of currency. It is an important…

Q: Define the term balance of trade.

A: Trade is the exchange of goods and services in return for money.

Q: Write the difference between capital account and current account

A: Concept of balance on current account and balance on capital account are always interrelated to each…

Q: What is more important, a country’s current account balance or GDP growth? Why?

A: The concept of the current account balance is narrow as compared to the concept of the GDP. The…