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A country’s current account
A.balance equals the change in its net foreign wealth.B.balance equals the change in its foreign wealth.C.surplus equals the change in its foreign wealth.D.deficit equals the chang...
cyxssbIn an open economy, private saving, Sp, is equal to
In an open economy, private saving, Sp, is equal toA.I - CA + (G - T).B.I + CA - (G - T).C.I + CA + (G - T).D.I - CA - (G - T).E.I + CA + (G + T).Answer: C
cyxssbIn terms of the current account,
A.a 2100 million dollar credit. B. a 2100 million dollars suplus.C.a 600 million dollar deficit. D. a 900 million dollar deficit.Answer: C
cyxssbJapan’s external surplus,
Japan's external surplus, represented in the equation X-M=S-I, shows that their amount of export beyond imports of goods and services is the same as the amount of:A.domestic saving...
cyxssbA debit entry in the balance of payments accounts represents
A debit entry in the balance of payments accounts representsA.a transaction that includes a payment from abroad to a domestic resident.B.a transaction that includes a payment abr...
cyxssbThe balance of payments system
The balance of payments systemA.is another method for calculating GDP.B.insures that the net exports are always equal to zero.C.measures the total value of a domestic economy's t...
cyxssb“The balance of payments is always balanced.” Discuss.
Answer: True. Every international transaction automatically enters the balance of payments twice, once as a credit and once as a debit.Current account + financial account + capital...
cyxssbThe nation of Pecunia had a current account
a.What was the balance of payments of Pecunia in that year? What happened to the country’s net foreign assets?Ans. –The balance of payments is a colloquial name for the official ...
cyxssbConsider the following entries into Canada’s
Current Account: 30.7Capital Account: 5.3Financial Account (excluding official international reserves): -24.9 Statistical Discrepancy: -5.5What happened to Canada’s net foreign as...
cyxssbSuppose the nation of Pecunia had a current account
What happened to Pecunia’s net foreign assets in 2013?The CA deficit indicated net foreign assets decreased by $1 billion.How would the purchase of Pecunian assets by foreign cent...
cyxssbHow many British pounds would it cost to buy a pair
How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.60 dollars per British pound?A.125 British poundsB.125 British ...
cyxssbAn appreciation of a country’s currency
A.decreases the relative price of its exports and lowers the relative price of its imports.B.raises the relative price of its exports and raises the relative price of its importsC....
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