In a given year, a country has $150 million more in imports than in exports, has to pay $25 million in interest and $75 million in principal on its foreign debt and it receives $100 million in workers’ remittances. The country’s overall government budget deficit for the year is $27 It also draws $38 million dollars from its reserves and receives $42 million in portfolio investments from foreign investors. It has no other income payments or receipts.Calculate the current account balance for this country in that year.

Given: (Export-Import)=$150 million Interest Payment=$25 million Work Remittances=$100 million

Answered: In a given year, a country has $150…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a given year, a country has $150 million more in imports than in exports, has to pay $25 million in interest and $75 million in principal on its foreign debt and it receives $100 million in workers’ remittances. The country’s overall government budget deficit for the year is $27 It also draws $38 million dollars from its reserves and receives $42 million in portfolio investments from foreign investors. It has no other income payments or receipts.

Calculate the current account balance for this country in that year.

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