how is the balance of payments linked to national saving and investment? explain.

Q: Discuss which of the following fall into the categories of consumption, investment, government…

A: To know in which category each option falls: a) Buying a second hand book isn't involved in the…

Q: What is the current account?

A: The formula for calculating current account is given below. Current account=Balance of Trade +…

Q: How are both the real interest rate, r, and the real exchange rate, Q, actually determined?

A: The inflation rate is the difference between the actual and nominal interest rates. (The nominal…

Q: How reasonable is it for every country to follow policies aimed at increasing net exports?

A: The rationality of a country to follow policies targeted towards increasing net exports. There are…

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

A: Increase of investment is includes the increment of plants in equipment's in the economy and…

Q: Given the following information: Millions $ Import of goods and services 298.00 Gross Investment…

A: i) NNP at fc=GDP at mp-Indirect taxes+NFIA-Capital consumption allowance+SubsidiesNNP at…

Q: 1. Use the following information to answer the questions below. Assume that the capital account is…

A: a. Exchange balance= Exports of labor and products import of labor and products =500-700 = -200 b.…

Q: WHAT IS THE IMPORTANCE OF EXCHANGE RATE IN OUR ECONOMY

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: What do you understand by the term “closed economy”? For a closed economy show,  National savings =…

A: The different economies around the world tend to operate in different ways. The economies work with…

Q: What is the real exchange rate, and how are fluctuations in the real exchange rate related to…

A: The product of the nominal exchange rate (for example, the dollar cost of a euro) and the price…

Q: 8. An increase in national saving requires either a rise in investment or an increase in the capital…

A: From the national income identity, an open economy can be expressed as follows,  Y = C + I + G + NX…

Q: Suppose that US citizens start saving more. What does this imply about the supply of loanable funds…

A: The impact of saving on real rate of interest is illustrated below:

Q: If the U.S. dollar appreciates 30 percent, a U.S. manufacturer experiences decrease/ increase in…

A: Currency depreciation is the loss of value of a country's currency with respect to one or more…

Q: In a country if households decide to save ____________,then the real exchange rate ____________ and…

A: If saving is more,investment expenditure will be more.Therefore aggregate demand will increase which…

Q: You are given the following information about an economy: Gross private domestic investment = 40…

A: The formula for GNP, GNP=GDP+NFP 200=GDP-2 GDP=202. Therefore, the value of GDP is 202. The formula…

Q: Briefly explain the circular flow of income in an economy. How does circular flow of income…

A: The Circular Income or Circular Flow is a model of the economy in which major transactions are…

Q: How do wars and pandemics affect a country's nominal exchange rate, interest rate, and production?

A: The nominal exchange rate basically determines that how much local money is required to acquire…

Q: -How is the balance of payments linked to national saving and investment? Explain.

A: The method used to monitor all the international transactions of a country, in a given period of…

Q: Is it more beneficial for a country to have a strong national currency or to have a weak national…

A: A national currency is one that a government issues through its central bank or other monetary…

Q: Suppose that in the same year Country A's GNP is $1,200, gross domestic private investment is $200,…

A: National saving is the total saving of an economy, it includes both private and government savings.

Q: What is current account deficit? List down, with detailed explanations, what causes current account…

A: Current Account forms a part of a country's Balance of Payments (BOP). It includes trade in goods…

Q: The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 20 koruny/U.S. dollar.…

A: GDP conveys us the information about the contribution to the economic activity done by all domestic…

Q: at is the value of net export? ne country lending to or borrowing from rest of the world? e the…

A:

Q: If equipment is fully tradable, so that the price in Kenyan shillings (KSh) equals the price in…

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

Q: The current account represents the difference between gross national disposable income and: a.…

A: The two-component of the balance of payment BOP of a country is the current account and the capital…

Q: Find any three saarc countries, CPI from internet, and then find out real exchange rate.

A:

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: A rise in interest rates tends to contract the economy by appreciating the currency and reducing net…

A: Currency appreciation: It is an expansion in the estimation of one money corresponding to another…

Q: What is the link between the foreign exchange market and the real economy

A: The foreign exchange market is the market where countries can buy, sell, exchange, and speculate the…

Q: USD/AUD=1.44 What is the GBP/AUD exchange rate?

A: The AUD/GBP exchange rate is expected to climb in 2021, according to banks. After a decline of…

Q: In a small open economy, if domestic investment equals $70 billion, domestic private saving equals…

A: Domestic saving in a country is the sum total of the private and government savings. Here, domestic…

Q: The country of Cincinnatisland (country C) joins country B to form a large open economy, while…

A: f. At equilibrium level  Saving (S) = Investment (I) Given  SC = 50 + 200r  IA = 80 - 200r

Q: Consider the following open economy. Real GDP Consumption Government Expenditures Investment Exports…

A: Here, it is given that the economy is an open economy and information about components of aggregate…

Q: Discuss which of the following fall into the categories of consumption, investment, government…

A: GDP is a macroeconomic measure used in the computation of the aggregate total output produced in an…

Q: Show, using algebra, that the current account balance is: (i) the difference between saving and…

A: Current account balance is actually under the balance of payment theory. Now this account measures…

Q: In a country if households decide to save .........., then the real exchange rate ............ and…

A: Exchange rate refers to the amount of domestic currency that required to purchase one unit of…

Q: Suppose an economy’s national accounts are GNP = 100, C = 70, I = 40, G = 20 and EX = 20 where GNP…

A: The GNP can be calculated as follows: Thus, the import (IM) is 50. Current account balance can be…

Q: In a small open economy, when the government reduces national saving, the equilibrium real exchange…

A: Exchange rate is the price (value) of one country's currency in terms of the currency of other…