At the beginning of 2014 Country A's Net International Investment Position is - at book (or accounting) value - equal to $0. During 2014 Country A residents purchase shares in Country B's stock market for $500, and Country A's government sells treasury bonds to Country B's residents for $5 Country A's Current Account Balance in 2014 and 2015 is 0, and no other financial account entries are recorded in Country A's balance of payme the end of 2015, however, Country B's shares owned by Country A residents have increased their value by 5%, while the Country A's treasury bo owned by Country B's residents have gained 10% of their original market value. What is the market value of Country A's Net International Investn Position at the end of 2015?

I am a bit confused on how to identify whether the problems are decreasing/increasing in Net Exports and Net Capital Flow

Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of $100 billion, total domestic savings of $1,500 billion, and total domestic physical capital investment of $1,600 billion. According to the national saving and investment identity, what will be the trade balance? What will be the trade balance if investment rises by $50 billion, while the budget deficit and national savings remain the same?

Why did China tried to limit depreciation by using dollars to buy yuan? Why didn't it work?

You have the following annual figures for the New Zealand economy.             Investment expenditure                      $42.5 billion            Government savings                           -$1.7 billion The current account balance is not zero.  In fact the current account deficit is $6.0 billion.  What is New Zealand's actual private sector savings figure?  $____billion (use 1 d.p.).

If the economy enters a recessionary gap, then incomes in the economy decrease, which reduce income tax revenues earned by the government. When the economy enters a recession, unemployment compensation increases due to an increase in jobless claims. In other words, the government budget deficit increases. Begin with the open economy financial market in equilibrium. What will happen to the U.S. savings and net capital inflow function if the U.S. budget deficit increases? What will to the investment function if the U.S. budget deficit increases? What will happen to the real rate of interest if the U.S. budget deficit increases? What will happen to the quantity saved/invested if the U.S. budget deficit increases? Given the change in the level of savings, what would happen to the level of consumption?

1) Assume Turkish lira (TL) is expected to depreciate by 10% over the next year against US dollar. If the Turkish interest rate is15%, what would be the US interest rate that can make a Turkish investor to be willing to buy US securities today? Assume capital is perfectly mobile between Turkey and US. 2-) If the price level of Turkish goods is 200, the price level of foreign goods is 125, and the lira price of foreign currency is 1.20, what is the real exchange rate? What is the meaning of this rate for the competitiveness of Turkish goods? 3-)With the help of an IS-LM diagram show and explain the effect of restrictive monetary policy on output under flexible exchange rates and perfect capital mobility

How would each of the following be likely to affect the balance of current account and capitalaccount, all else being equal? (a) European computer firms switch from software produced in Australia to software producedoutside of Australia.(b) The Australian government imposes a large tariff on imported automobiles.(c) Australian shares are perceived as becoming more risky.(d) Australian consumers increase their spending on imported goods.(e) Australia donates to nations affected by the tsunami of December 2004.(f) Australian universities increase tuition paid by overseas students.

Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget.   Real Interest Rate National Saving Domestic Investment Net Capital Outflow (Percent) (Billions of dollars) (Billions of dollars) (Billions of dollars) 7 60 25 -10 6 55 30 -5 5 50 35 0 4 45 40 5 3 40 45 10 2 35 50 15     Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol) to plot the supply of loanable funds. Finally, use the black point (cross symbol) to indicate the equilibrium in this market.       On the following graph, plot the relationship between the real…

Which of the following would be part of Canada's capital and financial account? dividend payments received by a Canadian on his foreign stock holdings one hundred shares of Tesla stocks purchased by a Canadian investor a Disney tour taken by a Canadian in Florida the interest payment on foreign government bonds held by the Bank of Canada