Suppose that in 2018, Botswana's capital account has a deficit. That means..(Check all that apply)O On net, Botswana is buying more foreign assets and accumulating more foreign currency than vice-versaO Botswana is importing more than it is exportingO On net, foreigners are buying more Botswanan assets and accumulating more Botswanan currency than vice-versaO Botswana is dis-saving

The capital account is the part of BOP that record all the transactions between the home country…

Answered: Suppose that in 2018, Botswana's…

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 3PA

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Similar questions

1. What is the exchange rate between the U.S. and Germany? Has there been appreciation or depreciation of the U.S. dollar relative to Germany's currency? 2. As a manager, how does this affect your decision to expand into Germany? Will it affect your costs or ability to produce in Germany? 3. Would you recommend your firm expand into Germany? If so, would you produce the product/service in Germany? Would you expand to sell the product/service to a new target market? If you don’t think your firm should expand into Germany, why?
8. Suppose that last year, the nominal exchange rate between the Japanese yen and the British pound was ¥150.0 per £1.0, one unit of Japanese output cost ¥1300, and one unit of British output cost £8.0.a. What was the real exchange rate between the U.K. and Japan last year, expressed as the cost of British output (i.e. – the quantity of Japanese output that exchanges for 1 unit of British output)? In which country were goods more expensive last year?
7 Suppose the exchange rate was 104 yen per dollar in 2017 and 110 yen per dollar in 2018. The dollar (Click to select) increased decreased in value and the yen (Click to select) increased decreased in value.
8) Suppose that the government has imposed the tax on the foreign investorsper currency they pay for financial assets issued by the country. Discuss itsimplications on the current foreign exchange rate?
6. Most foreign exchange transactions are through the U.S. dollar. If the transaction is expressed as the foreign currency per dollar this is known as _____________ whereas ___________ are expressed as dollars per foreign unit. a. European terms; indirect b. American terms; direct c. American terms; European terms d. European terms; American terms
1. Exporter A offered woolen blanket at price USD 1000 M/T CIFC 3% Hamburg. If the freight costs is USD 80 per M/T, and insurance premium is USD 10 per M/T, the purchasing price of the product is RMB 4000 per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price, please calculate the total costs of export, the net income from the export and the exporting conversion cost of foreign exchange. If the current exchange rate is 6.5 RMB/USD, is it profitable from the export?
What does it mean to say that a currency appreciates? Depreciates? Becomes stronger? Becomes weaker?

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