Question: Exercise 1:4. Calculate the net capital flow. Does this country experience a net capital inflow or
outflow? Exercise 2:1.Calculate the net capital flow? Is this country experiencing a net capital inflow or outflow?
2.Calculate the country’s basic balance.
Question: Exercise 1:4. Calculate the net capital flow. Does this country experience a net capital inflow or outflow? Exercise 2:1.Calculate the net capital flow? Is this country experiencing a net capital inflow or outflow? 2.Calculate the country’s basic balance.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question:
Exercise 1:4. Calculate the net capital flow. Does this country experience a net capital inflow or
outflow? Exercise 2:1.Calculate the net capital flow? Is this country experiencing a net capital inflow or outflow?
2.Calculate the country’s basic balance.
Transcribed Image Text:Account
Goods: exports
Goods: imports
Services: credit
Services: debit
Income: credit
Income: debit
Current transfers: credit
Current transfers: debit
Capital Account balance
Financial Account balance
2015
1500
-2200
750
-400
300
-250
400
-150
-14
1150
2016
1300
-1500
800
-350
350
-280
300
-160
-16
1200
2017
1100
-1700
650
-500
450
-320
250
-100
-13
1100
Required: Use the above information to:
a. Calculate the trade balance.
b. Calculate the service balance.
c. Calculate the current account.
d. Calculate the net capital flow. Does this country experience a net capital inflow or
outflow?
Transcribed Image Text:Account
Current Account balance
Capital Account balance
Financial Account balance
Reserves and related items
Net errors and omissions
2011
136,097
5,446
260,024
-387,799
-13,768
2012
193,139
4,272
21,064
-96,555
-79,773
equired: Use the above information to calculate:
a. Calculate the net capital flow? Is this country experiencing a net capital inflow or
outflow?
b. Calculate the country's basic balance.
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