ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Assuming that a country has a
A. The country's exports are $120 billion and its imports are $180 billion
B. The country's exports are $100 billion and its exports are $150 billion
c. The country's imports are $120 billion and its exports are $180 billion
d. The country's exports are $150 billion and its imports are $100
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- Suppose the country of Lilliput exported $293 billion worth of goods and imported $473 billion worth of goods in the last calendar year. a. Calculate Lilliput's balance of trade. $ b. Which type of trade balance is Lilliput running? a trade surplus a trade deficit neither a trade deficit nor a trade surplus billionarrow_forwardSupposed that a small open economy is running a trade deficit. The government enacts protectionist trade policies (such as a tariff or quota on imports) with a goal of reducing the trade deficit. Show the impact on the trade deficit? what is the impact on the volume of trade? explain whether the government was succesful in reaching its goal.arrow_forwardtwo reasons: They export raw materials and export finish goods Developing economy importing machinery and other capital 2 reasons discussed above is why a country could run a trade deficit and hence be an international borrower. In which of these 2 cases should one be worried about the sustainability of the deficit and the ability of the country to pay back foreign loans in the future? Why?arrow_forward
- Question 4 All other things being equal, which of the following is most likely to lead to improvement in the balance of payments deficit of a country? A fall in an ABCD income tax rates. unemployment. the exchange rate. exports.arrow_forwardQuestion: What is the term for a situation where a country exports more goods and services than it imports? A) Trade deficit B) Current account surplus C) Budget deficit D) Fiscal surplusarrow_forwardA net exports deficit will become a surplus if _______. A. the country appreciates its currency B. the government budget deficit is turned into a surplus and the private sector has a surplus C. private saving and government saving exceed private investment D. the private sector surplus adjusts to equal the government sector deficitarrow_forward
- help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forwarda. In the diagram, shift the relevant curve(s) to the show the long-run effect of an increase in the trade deficit, if the accompanying capital account surplus supports investment. Price level LRAS AS X AD Price level GDP b. In the diagram, shift the relevant curve(s) to the show the long-run effect of an increase in the trade deficit, if the accompanying capital account surplus supports consumption. LRAS AS X AD GDParrow_forwardAnswer in all option pleasearrow_forward
- Comment on the folllowing statement "Since the United States imports more than it exports it is necessary for the United States to import capital from foreign countries to finance its current account deficits."arrow_forwardSuppose a country exports $60 million worth of goods and services, while it imports $50 million worth of goods and services. This country has a trade deficit and negative capital inflow. has a trade deficit and a postive capital inflow. has a trade surplus and negative capital inflow. has a trade surplus and a positive capital inflow.arrow_forwardWe may use the diagram below (Figure 2, panel (a)) to assess whether trade deficits are bad. Use the diagram to explain whether (or when) trade deficits are bad.arrow_forward
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