6. Debtors and creditors - Net international investment position Suppose that at the end of 2012, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2012 is $ experiencing debt.) billion. (Hint: Be sure to include a negative sign if the U.S. is Suppose that in 2013, the United States runs a current account surplus of $514 billion. If other factors remained constant, the net international investment position of the United States would during 2013 to $ billion. Suppose that during 2013, the U.S. net external debt decreases by $393 billion from the previous year. Given the current account balance, which of the following can explain this outcome? Check all that apply. The net borrowing of the United States was greater than its current account deficit. Foreign-owned assets in the United States appreciated (gained value). U.S.-owned assets held abroad depreciated (lost value). The U.S. current account deficit was greater than the country's net borrowing.
6. Debtors and creditors - Net international investment position Suppose that at the end of 2012, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2012 is $ experiencing debt.) billion. (Hint: Be sure to include a negative sign if the U.S. is Suppose that in 2013, the United States runs a current account surplus of $514 billion. If other factors remained constant, the net international investment position of the United States would during 2013 to $ billion. Suppose that during 2013, the U.S. net external debt decreases by $393 billion from the previous year. Given the current account balance, which of the following can explain this outcome? Check all that apply. The net borrowing of the United States was greater than its current account deficit. Foreign-owned assets in the United States appreciated (gained value). U.S.-owned assets held abroad depreciated (lost value). The U.S. current account deficit was greater than the country's net borrowing.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 44P: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Step 1: Define net international investment position and how it is calculated.
VIEWStep 2: Explain the factors that affect the net international investment position of a country.
VIEWStep 3: Calculate the NIIP for the United States in 2012.
VIEWStep 4: Calculate the NIIP for the United states in 2013.
VIEWStep 5: Explain the potential reasons for the net decrease in US external debt.
VIEWSolution
VIEWTrending now
This is a popular solution!
Step by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax