Why is a nation with a current account deficit a borrower at that point in time?

Q: Based on the transactions in the above table, what is the change in the U.S. current account…

A: Current account balance = Export of goods and services – Import of goods and services + Net…

Q: People sometimes worry that American trade with other countries will lead to large U.S. trade…

A: The answer is - a) have both current account and financial account deficits at the same time.

Q: How can the United States government improve the Balance of Payments in the future from 2018 to…

A:

Q: In the BOP accounts, what are the four basic components of the current account? How can information…

A: Four basic components of current account in BOP include: Goods  Services Income and  Current…

Q: Explain how changes in various economic factors affect a country's current account balance.

A: The current account balance of a country exhibits its transactions with the rest of the world. It is…

Q: You have the following annual figures for the New Zealand economy.             Investment…

A: Increase of investment is includes the increment of plants in equipment's in the economy and…

Q: What is meant by current account deficit and current account surplus? State their significance

A: A balance of payment account is a record of international transactions of an economy over a…

Q: Why are budget deficits and trade deficits sometimescalled the twin deficits?

A: A budget deficit is a situation that is faced by the government when its total spendings exceed the…

Q: Find the current account balance when the trade balance are 2,81,000 and the invisible balance are…

A: Generally in the given question Trade balance are given as = 281000 Invisible balance = 391000…

Q: Explain why a nation with a current account deficit is a net external borrower, while a nation with…

A: The account that represents exports and imports of goods and services of countries is known as the…

Q: What is the difference between foreign sales revenues and foreign purchase expenses called? A)…

A: In the international market, as the home country makes a record of all the inflow and outflow of…

Q: What does symmetrical adjustment of current account imbalances mean?

A: The Current Account is referred to as a country's exports and imports of goods and services and the…

Q: How does devaluation (lowering the exchange rate) help cure current account deficit in the economy?

A: Devaluation refers to the situation where domestic country reduces the value of its currency against…

Q: Why could a current account deficit stimulate an economy? List at least two reasons and explain with…

A: Current account deficit The current account deficit is a situation in the economy of a country…

Q: Japan has run large current account surpluses for much of the past two decades, yet no one ever asks…

A: Balance of trade of a country denotes the imports and exports of the country.

Q: What are the automatic adjustment mechanisms operate to correct a deficit in the balance of payments…

A: Fixed Exchange Rate refers to the regime imposed by the reserve bank or by the central government…

Q: ‘According to David Hume’s theory of automatic price adjustment, countries experiencing current…

A: Price specie flow mechanism: It refers to the theory under which how the trade balances can be…

Q: Explain the causes of current account deficit, and how CAD is affecting the economy of Pakistan?

A: A deficit of CA {current account} is described as a measurement of trade that states that a nation…

Q: Explain why the Cedi continues to depreciate against most major international currencies and offer…

A: Currency depreciation, which often occurs under a floating exchange rate system when no official…

Q: Given that a country has a large and possibly unsustainable current account deficit, explain how you…

A: We'll answer the first 3 sub parts as no particular sub part has been mentioned. Current account…

Q: Explain what a debt crisis is and how it can trigger a balance of payments crisis

A: Debt Crisis is a state in which a country is not able to return the government debt. When the…

Q: Discuss the implications of a persistent current account deficit for an open economy like Pakistan…

A: A current account deficit is a trade indicator that indicates a country's imports of goods,…

Q: Explain very briefly about elasticity approach , national income approach , absorption approach ,…

A: The balance of payments is a system used by countries to keep track of all foreign monetary…

Q: A current account deficit is generally a result of:     a large amount of U.S. purchases of…

A: Current account deficit:The current account deficit refers the measures of a country's trade where…

Q: Comparison of Global Current Account surpluses (green and blue bars) and Global Current Account…

A: ANSWER   The symmetry in the chart can be described by the concept of international trade or Open…

Q: How does an increase in government spending affects aggregate demand, investment, and net exports in…

A: In the small open economy, the capital inflow and outflow would have free movement because of…

Q: Based on the table below, which of the following is likely to be true? a. From the first period to…

A: I the mentioned question, we have to answer as per the data present in the table. Lets discuss one…

Q: What is the meaning of a surplus (deficit) on the current account balance? What economic…

A: Current Account Balance A balance of payment is a statement that records all the transactions of a…

Q: Why is a current account surplus equivalent to foreign investment ？

A: The countries worldwide gets involved in the sale and purchase of the goods, services, inputs of…

Q: Show, using algebra, that the current account balance is: (i) the difference between saving and…

A: Current account balance is actually under the balance of payment theory. Now this account measures…

Q: Is a Stronger Dollar Good for the U.S. Economy?

A: The exchange rate is the price of one country's currency expressed in terms of some other currency.…