Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 41, Problem 2P
To determine
The balance on the financial account.
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Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets are 70 billion pesos (P) and peso-denominated external liabilities are 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1.5 = $US1.
a) What is the peso value of Argentina's total external wealth? Is it a net debtor or creditor?
b) Suppose that Argentina changes its exchange rate to P2.3 = $US1. How does the external wealth of Argentina change when this occurs?
this question has three questions . What proportion of this country’s total gross capital formation (or investment) can be financed from national savings, and what part must be financed from external resources? What are the various forms these external resources could take? show in graph how the current account got a deficit of 12% GDP and the budget deficit of 3%.
Suppose a country has a large current account deficit (in the vicinity of 12% of GDP). It has a gross capital formation rate of 28% of GDP. The country has an overall budget deficit of 3% of GDP. The share of Household and NPISHs Final Consumption Expenditure is 68% of GDP and that of General Government Final Consumption Expenditure is 12%. What proportion of this country’s total gross capital formation (or investment) can be financed from national savings and what part must be financed from external resources? What are the various forms these external resources could take?
During the year, Japan had a current-account surplus of 98 billion.
What is the gap between Japan’s national expenditure and its national income? Explain.
What is the gap between Japan’s savings and its domestic investment? Explain.
Suppose the Japanese government’s budget ran a 22 billion surplus during the year. What can you conclude about Japan’s private savings-investment balance for the year? Explain.
Chapter 41 Solutions
Economics (Irwin Economics)
Ch. 41.1 - Prob. 1QQCh. 41.1 - Prob. 2QQCh. 41.1 - Prob. 3QQCh. 41.1 - Prob. 4QQCh. 41.A - Prob. 1ADQCh. 41.A - Prob. 1ARQCh. 41.A - Prob. 1APCh. 41 - Prob. 1DQCh. 41 - Prob. 2DQCh. 41 - Prob. 3DQ
Ch. 41 - Prob. 4DQCh. 41 - Prob. 5DQCh. 41 - Prob. 6DQCh. 41 - Prob. 7DQCh. 41 - Prob. 8DQCh. 41 - Prob. 9DQCh. 41 - Prob. 10DQCh. 41 - Prob. 11DQCh. 41 - Prob. 1RQCh. 41 - Prob. 2RQCh. 41 - Prob. 3RQCh. 41 - Prob. 4RQCh. 41 - Prob. 5RQCh. 41 - Prob. 6RQCh. 41 - Prob. 7RQCh. 41 - Prob. 8RQCh. 41 - Prob. 9RQCh. 41 - Prob. 10RQCh. 41 - Prob. 1PCh. 41 - Prob. 2PCh. 41 - Prob. 3PCh. 41 - Prob. 4PCh. 41 - Prob. 5P
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