Exercise 1.7 Indicate whether the statement is true, false, or uncertain and explain why. 1. The net foreign asset position of South Africa in 2010 and 2011, respectively, was -70.5 billion USD and -19.7 billion USD. The current account in 2011 was -10.1 billion USD. There must be an error in the official numbers. The correct figure should be a net international investment position of -80.6 billion USD in 2011. 2. The fact that the United States made large valuation gains on average over the past 40 years means that the rest of the world as a whole made equally large valuation losses. After all, this is a zero sum game. 3. The United States has large unrecorded foreign asset holdings. 4. Saving is a stock variable.

Exercise 1.7 Indicate whether the statement is true, false, or uncertain and explain why. 1. The net foreign asset position of South Africa in 2010 and 2011, respectively, was -70.5 billion USD and -19.7 billion USD. The current account in 2011 was -10.1 billion USD. There must be an error in the official numbers. The correct figure should be a net international investment position of -80.6 billion USD in 2011. 2. The fact that the United States made large valuation gains on average over the past 40 years means that the rest of the world as a whole made equally large valuation losses. After all, this is a zero sum game. 3. The United States has large unrecorded foreign asset holdings. 4. Saving is a stock variable.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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