If balance of trade is positive, Xn Is a positive number. The impact of Xn is A. GDP will become positive B. GDP will remain constant C. To decrease GDP D. To increase GDP
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- If balance of trade is negative, Xn is negative number. The impact of Xn is A. GDP will become negative B. GDP will remain constant C. to decrease GDP D. to increase GDPAn economy, Delta exported goods worth $30 billion and services worth another $10 billion in 2020. It imported goods worth $40 billion and services worth $8 billion. Receipts of income from abroad were $20 billion while income payments going abroad were $18 billion. Government transfers from Delta to the rest of the world were $7 billion, while various Delta government agencies received payments of $3 billion from the rest of the world. Calculate Delta merchandise trade deficit, and current account balance for 2020.Purchasing power parity holds A. Weakly in the short and long run B. Stronger in the short run and weaker in the long run C. Weaker in the short run and stronger in the long run D. Strongly in the short and long run
- What are the expenditure changes police’s that are used to cure unemployment when a nation faces unemployment with a surplus in the balance of payments and what epilepsy happen to the nation’s balance of paymentsFind the value of balance of trade when the value of exports are $16 and value of imports are $11?Current Account does not include: Question 6Answer a. Payments in connection with foreign trade b. Portfolio investment c. Net income investments in other country d. Interest on loans to other countries
- If the balance of trade is 2050 billion and the value of exports are 3000 billion find the value of imports!Thailand is a net-importer. This means that they import more than they export. How does this affect the value of their currency with respect to foreign exchange? a. None of these b. their currency will become weak c. their currency will not be affected d. their currency will become strongThe ‘current account’ includes records of a country’s: Select one: a. net exports. b. net primary income. c. net secondary income. d. All of the above are included in an economy’s current account.
- Explain purchasing power parity's importance when comparing countries.Show an effect of a sale of dollars and a purchase of foreign assets (unsterilized intervention). Will dollar appreciate or depreciate? Draw a diagram.A stronger Canadian dollar hurts Select one: a. importers. b. Americans only. c. Canadians who shop in the U.S. d. Canadian students who attend U.S. universities. e. exporters.
