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 Value Balance Exports of Goods $500 Imports of Goods 1600 Balance of Trade - 1100 Exports of Services Imports of Services Balance of Services 350 -300 50 50 Income Received on 400 Investments Income Payments on -700 Investments Net Income on -300 Investments Net Transfers -100

The nation of Narnia had a current account deficitof $423 million and a nonreservefinancial account surplus of $360 million in year3695.   a.What was the balance of payments of Pecunia in thatyear? What happenedto the country’s net foreign assets?   b.If there is a sudden increase in sales of goods andservices to foreigners,what effect do you expect in the Balance of Paymentaccount?   c.How would the increase in domestic interest rate inyear 3695 affect thebalance of payment?

A case study in the chapter analyzed purchasingpower parity for several countries using the pricc ofBig Macs. Here arc data for a few more countries: a. For each country, compute the predicted exchangerate of the local currency per U.S. dollar. (Recallthat the U.S. price o( a Big Mac was $4.93.)b. According to purchasing-power parity, what is thepredicted exchange rate between the Hungarianforint and the Canadian dollar? What is the actualexchange rate?c. How well docs the theory of purchasing-powerparity explain exchange rates?

The current account for a fictitious country is shown in the table below. The balance on the capital and financial account for this country is $12 billion. a. Fill in the missing values in the table. Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. CURRENT ACCOUNT (in billions of dollara) (1) Goods exports 654 (2) Goods imports (3) Balance on goods -11 (4) Exports of services (5) Imports of services -188 (6) Balance on services (7) Balance on goods and services (8) Net investment income (9) Net transfers 21 (10) Balance on current account b. The country has a current account (deficit

Suppose the United States decides to subsidize theexport of U.S. agricultural products, but it does notincrease taxes or decrease any other governmentspending to offset this expenditure. Using a threepanel diagram, show what happens to nationalsaving, domestic investment, net capital outflow, theinterest rate, the exchange rate, and the trade balance.Also explain in words how this U.S. policy affects theamount of imports, exports, and net exports.

In one yeer the United States had a current eccount delicit of -$358 billion, The balance on the capital account was-$5 billion. What was the balance on the financial account? Multpe Chokce $3 blion $353 bilon -$363 billon -$358 bilon -$363 was incorrect The U.S. often has a significant surplus in services trade, even though it has a deficit in goods trade. True or False True False

Determine which 'account of the Balance-of-Payments is affected the following transaction: A local parent sends 500 Euros to his/her son who is studying engineering at a German university. Select one: O a. Capital Account Foreign Direct Investment O b. Capital Account - Portfolio Investment Current Account - Transfers Od. Current Account - Imports O e. Current Account Exports

estion e explain tq Q1. How would the following transactions affect Malaysian exports, imports and net exports? a) AMalaysian professor spends the summertouring museums I Europe. b) Students in Kuala Lumpur flock to see the latest movie from Hollywood, U.S.A c) Your undle buys a new Toyota. # 国 nere to search 直

Determine which account of the Balance-of-Payments is affected the following transaction: A local parent sends 500 Euros to his/her son who is studying engineering at a German university. Select one: O a. Capital Account Foreign Direct Investment O b. Current Account Transfers O c. Capital Account Portfolio Investment O d. Current Account Imports O e. Current Account - Exports re to search

Q.1.10 Which of the following statements is correct? (2)(1) When a British firm invests in a bicycle manufacturing facility in South Africa,the amount concerned is entered as an inflow on the current account of theSouth African balance of payments.(2) When someone purchases a second‐hand car, the transaction is included inthe calculation of GDP in the year the sale took place.(3) A deficit on the current account of the balance of payments indicates thatthe country exported more than it imported during the period in question.(4) In the base year, the value of nominal GDP is equal to the value of real GDP.