How would each of the following be likely to affect the balance of current account and capital account, all else being equal? (a) European computer firms switch from software produced in Australia to software produced outside 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.

How would each of the following be likely to affect the balance of current account and capital account, all else being equal? (a) European computer firms switch from software produced in Australia to software produced outside 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.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 18E

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