What is the nation’s trade balance on its current account and capital account given the following information? Is the nation experiencing a cash (outflow) in its current account and capital account? Was there a net currency inflow or outflow? Please prepare a table for both current account and capital account. Imports: $206 Exports: 250 Direct investment abroad: 34 Foreign investments in the country: 16 Foreign purchases of domestic securities: 33 Purchases foreign securities; 87 Net income from foreign investments; 71 Government spending abroad: 33

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 44P: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit...
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What is the nation’s trade balance on its current account and capital account given the following information? Is the nation experiencing a cash (outflow) in its current account and capital account? Was there a net currency inflow or outflow? Please prepare a table for both current account and capital account.

Imports: $206

Exports: 250

Direct investment abroad: 34

Foreign investments in the country: 16

Foreign purchases of domestic securities: 33

Purchases foreign securities; 87

Net income from foreign investments; 71

Government spending abroad: 33

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