Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 5, Problem 1NP
To determine
Net Exports, current account balance, financial account balance, balance of payments
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Given the following information: Unilateral transfers: $120 billion, Exports in goods: $1,000 billion, Exports in services: $500 billion, Imports in goods: $1,400 billion, Imports in services: $300 billion, Income received by U.S. investors on foreign stocks and bonds: $600 billion, Income received by foreign investors on U.S. assets: $500 billion, what is the current account balance?
Exports of goods and services
1,872
Imports of goods and services
2,375
Net unilateral transfers
-99
Net Investment Income
170
Capital Account
-7
Net US acquisition of financial assets
958
Net US incurrence of liabilities
1,391
Net financial derivatives
-14
Based on the table above, the balance on the current account is
Group of answer choices
673
503
-432
-447
-503
The table below gives the data about Etruria's balance of payments. (All figures are in billions of dollars.)
Foreign investment in Etruria
82
Secondary (transfers) income received from abroad
13
Primary (investment) income received from abroad
9
Imports of goods and services
148
Exports of goods and services
152
Secondary (transfers) income paid abroad
8
Etruria investment abroad
64
Primary (investment) income paid abroad
25
a. What is the value of the balance of trade?
$
b. What is the balance on the current account? Remember to enter a minus (−) sign to indicate negative values.
c. What is the balance on the capital account?
d. Is there a balance of payments surplus or deficit? How much?
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