The net balance of payments is Multiple Choice O O O the sum of the current account balance and the trade account balance. the sum of the current account balance and the capital account balance. the difference between exports and imports. the difference between the current account balance and the capital account balance.
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- The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What percent of GDP is the current account balance?If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account balance?In 2001, the United Kingdoms economy exported goods worth 192 billion and services worth another 77 billion. It imported goods worth 225 billion and services worth £66 billion. Receipts of income from abroad were 140 billion while income payments going abroad were 131 billion. Government transfers from the United Kingdom to the rest of the world were 23 billion, while various U.K government agencies received payments of 16 billion from the rest of the world. Calculate the U.K. merchandise trade deficit for 2001. Calculate the current account balance for 2001. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
- What is Australia’s balance on goods? What is Australia’s balance on services What is Australia’s balance on goods and services? What is Australia’s current account balance?Discuss the difference between the merchandise trade balance and the US current account balance. Explain the components of the current account balance, and if on net (exports - imports) they are positive or negative for the US.Find the current account balance when the trade balance are 2,81,000 and the invisible balance are 3,91,000 in the circular flow of income?
- In 2001, the United Kingdom's economy exported goods worth £192 billion and services worth another £77 billion. It imported goods worth £225 billion and services worth £66 billion. Receipts of income from abroad were £140 billion while income payments going abroad were £131 billion. Government transfers from the United Kingdom to the rest of the world were £23 billion, while various U.K government agencies received payments of £16 billion from the rest of the world. Calculate the U.K. merchandise trade deficit for 2001. Calculate the current account balance for 2001.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 paymentsIn 2001, the United Kingdom's economy exported goods worth £192 billion and services worth another £77 billion. It imported goods worth £225 billion and services worth £66 billion. Receipts of income from abroad were £140 billion while income payments going abroad were £131 billion. Government transfers from the United Kingdom to the rest of the world were £23 billion, while various U.K government agencies received payments of £16 billion from the rest of the world. Calculate the U.K. merchandise trade deficit for 2001. Calculate the current account balance for 2001. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
- Spain operates in the world economy(open economy). Its economy can be described by the following consumption and investment curves: C(r) = 5000-1000r+0.25Y, I(r) = 500-1800r+0.2Y. Its output is Y = 13250 and the government spending is G = 8000. The world Interest rate is 5%. Before joining the world economy, Spain’s closed economy output is 13000. Question: What is Spain’s current account balance?Purchasing Power Parity (PPP) implies that the level of exchange rates adjusts so that identical goods cost the same amount in different countries. In many cases, the PPP is violated. Briefly explain drawing on the assumptions of absolute PPP. You are the trade advisor to a multinational company with an investment of US1,500,000. The following are the rates quoted on the FOREX market. US $ to Euro 1.22/€ US$ to pounds 1.84/£ Euros to pounds 1.54/£ Calculate the cross rate and determine if a profit opportunity exists. What is the value of that profit if you decide to trade with the US$1.5 million?Which of the following is included in a nation's current account? a) Purchases of foreign assets b) Borrowings from abroad c) Foreign purchases of U.S. financial assets d) Investment income receipts e) Purchases of foreign real property