There are two large open economy. Current account balance of the home country is given by -15+30r", where rw is the world interest rate. Current account balance of the foreign country is given by 6+15rw. The equilibrium world interest rate is -20% 20% 15% -15%

If a country runs a deficit in its current account, it has to be financed by running a capital account surplus which is limited to borrowing from abroad. Select one: O True O False

1a Russia's BOP in year 2006 was​ (in millions) ​$ 1b The net capital flow in year 2006 was​ (in millions) ​$

The United States has a current account deficit equal to about 3.5 percent of GDP. Suppose that the US Government decides that it wants to reduce that to about 2.0 percent of GDP. A current account deficit means that the US is a For the US current account balance to Consequently one of these things must happen: US investment private savings net lender to exports and imports government expenditure US domestic savings must rise; and/or must fall. be balanced rise net taxes government savings net foreign income the rest of the world. (as they wish it to) then rest of the world savings must net borrower from net exporter of goods and services to MacBook Air be less than US savings fall net importer of goods and services from