In 2018, Germany had the world’s largest current account surplus of US$291 billion. Using this one piece of information, answer the following questions. a. Which was greater, the income Germans earned from abroad or incomes paid abroad from Germany? b. What is Germany’s financial account balance? Is it a surplus or deficit? c. Were financial inflows or financial outflows greater for Germany? d. Was total spending or total income greater in Germany in 2018?

Write a short essay (max 150 words) analyzing the following. The US has been maintaining a current account deficit for a long time. It widened by 167.0billion, or 34.8percent, to647.2 billion in 2020. Using the two-period model of the current account, explain why Covid-19 can cause this widening.

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?

Question: "In a scenario where a country operates under a floating exchange rate system, what would likely be the effect of a significant increase in its central bank's interest rates on the country's current account balance? Assume other global economic conditions remain constant." a) The current account balance will improve due to increased foreign investment. b) The current account balance will deteriorate due to increased imports and decreased exports. c) The current account balance will improve due to decreased imports and increased exports. d) The change in interest rates will have no effect on the current account balance.

A. Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. i. Explain how growth in the demand for Canada's natural resources would affect the demand for Canadian dollars in the foreign exchange market. Explain how the supply of Canadian dollars would change. ii. iii. Explain how the value of the Canadian dollar would change. iv. Illustrate your answer with a graphical analysis. 1

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The financial account balance of the Canadian balance of payments decreases in all of the following cases except one. Which? Please choose an answer: at. Decrease in international reserves held by the Bank of Canada; b. Increase in Canadian direct investment in Mexico. vs. Increase in foreign bonds held by Canadians; d. Decrease in American direct investment in Canada; e. Decrease in Canadian bonds held by non-residents of Canada;

Answer in all option please

QUESTION 2 Choose the correct one from below. A negative shock to firms' productivity doesn't affect the country's current account balance if the shock is temporary. A negative shock to firms' productivity affects the country's current account balance even if the shock is temporary.

Suppose a country's net exports are $400 billion, income receipts on investments are $780 billion, and income payments on investments are $1,200 billion. Suppose unilateral transfers are $250 billion. If all international transactions are recorded accurately in the balance of payments, what is the value of the financial account? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a -$20 billion b d -$270 billion $270 billion Need information on the flows of funds for real and financial investments to answer. Your answer