Determine the private sector and the government sector balance.

Question

Want to see the full answer?

Answer 1

Question

Chapter 26, Problem 27APA

To determine

Determine the private sector and the government sector balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Find US net export (current account balance) and its relation with US savings and investment. Draw a figure to show it.

Using the data calculate the balance on current account for this economy. The value of the current account is: $ Round your solution to the nearest whole number and be sure to include a negative sign if necessary. Current Account Exports of Goods Imports of Goods Balance of Trade Exports of Services Imports of Services Balance of Services Income Received on Investments Income Payments on Investments Net Income on Investments Net Transfers Value $900 1300 350 -300 200 -900 Balance - 400 50 - 700 -100

Here are data for the U.S. balance of payments in a given year. All figures are in billions of dollars. Answer all of the following: a.The balance of trade in goods and services is $____billion. Balance of trade= (1635+709)-(478+2371)= -505 b. The current account balance is $____billion. Current account= (-505+218)= -287. (-287-124)= -411 c.The capital and financial account balance is $____billion. Capital and financial account= (1044-632)=412. (412-1)=411 d. The overall balance of payments balance is $____ billion. Explain why this must be so. balance of payments= -411+411= 0 Here's is the information table: Foreign purchases of US assets - 632 Goods imports - 2,371 Service imports - 478 Net investment income +218 Service exports +709 Goods exports +1,635 Balance on the capital account -1 Net transfers -124 US purchases of assets abroad +1,044 Can you please check if my answer is correct and explain to me why answer d the overall balance of payments must be so?