Select all of the following statements which can be said of a country with a current account deficit over the previous year: The country is exporting more than it is importing, assuming that net foreign aid and investment income is zero.   The country was a net borrower over the previous year.   Assuming zero net foreign aid and investment income, the country imported more than it exported.   The country will experience upward pressure on its currency prices.   The country must decrease its currency reserve account.

For a given level of output (Yf), will the current account balance (CA) vary inversely with the level of domestic absorption (A)? Why or why not? Explain.

A nation is considered to be a(n) current account is in deficit. in the international market, if its importer exporter borrower lender

What will happen to the US trade deficit if the US is in a recession while our trading partners are strong

In 2008, a small country imported goods worth $900 billion and exported goods worth $343 billion. It exported services worth $248 billion and imported services worth $530 billion. Payments on investments abroad totaled $499 billion, while returns paid on foreign investments were $25 billion. Unilateral transfers from the country to other nations amounted to $81 billion. What was the country's merchandise trade deficit for 2008? (In billions of Dollars.)

Catherin Mann (2006), “The Current Account and the Budget Deficit: A Disaggregated Perspective,” in Kopcke, Tootell, and Triest (eds.), The Macroeconomics of Fiscal Policy, MIT Press In the article, Mann notes that the foreign financing of the US current account deficit has increasingly taken the form of foreigners purchasing US Treasury bonds. She is concerned that the increase of foreign holdings of US Treasury bonds may worsen the US current account deficit in the future. Which of the following statements is inconsistent with her reasons behind the concern? a. As global interest rates starts to climb, the overall payments on interest-bearing liabilities (including US Treasury bonds) will rise. b. The interest paid on US government debt (ie, US Treasury bonds) will be increasingly paid to foreign holders, setting up a negative feedback loop between fiscal deficit and current account deficit. c. The greater the US current account deficit, the larger the risk of eventual, sharp…

If national income Y = 10,000, disposable income Yd = 8,000 , consumption is C = 7,500, transfer payments TR = 100 and the budget deficit is BD = 150, what is the level of private domestic investment, I ? (please insert the round number without the Euro symbol)

Question: How is this likely to affect economies that are heavily dependent on oil imports? a) Decrease in inflation b) Increase in their trade deficits c) Increase in their exports d) Decrease in their current account deficits

A current account deficit is generally a result of:     a large amount of U.S. purchases of foreign real estate.   U.S. purchases of bonds issued by foreign corporations.   imports exceeding exports.   exports exceeding imports.

Australia has a current account surplus of $3 billion per quarter and a net income deficit of $3 billion per quarter. Which of the following is true? The capital account deficit is $6 billion per quarter Net foreign liabilities are increasing All of the other options The trade surplus is $6 billion per quarter