Use the following to answer question 4-6. Table 1: Hypothetical National Income and Product Accounts Data Category Consumption (personal consumption expenditures) Investment (gross private domestic investment) Government consumption (government expenditures) Exports of goods and services Imports of goods and services Foreign income payments to domestic factors Domestic income payments to foreign factors Billions of dollars 500 200 200 50 150 20 10 Net unilateral transfers -10 Capital account balance -10

Use the following to answer question 4-6. Table 1: Hypothetical National Income and Product Accounts Data Category Consumption (personal consumption expenditures) Investment (gross private domestic investment) Government consumption (government expenditures) Exports of goods and services Imports of goods and services Foreign income payments to domestic factors Domestic income payments to foreign factors Billions of dollars 500 200 200 50 150 20 10 Net unilateral transfers -10 Capital account balance -10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A country’s private consumption is 30, government spending is 7, investment is 5, net factor income from abroad is 2, GDP is 45. The country’s gross national disposable income is 46. the country’s gross national income is 47. the gross national expenditure is 42 and the Current account is 4. The country sent abroad 2 and received 1 of unilateral transfers. The rest of the world claims 100 of debt from the country above. This is a stock variable. The country lends at 4% and borrows at 3%. These are rates of change of stocks. Use this information combined with one of the flow variables describing the country’s international transactions to find the stock of what the world owes this country. Note: no workers worked across the border. No wages flowed in, none flowed out. Is the country from the previous question rich or poor? Does it enjoy the exorbitant privilege? In what important way is this country’s stock and flow of investment different from the US?
Which of the following statements is correct? (2)(1) When a British firm invests in a bicycle manufacturing facility in South Africa,the amount concerned is entered as an inflow on the current account of theSouth African balance of payments.(2) When someone purchases a second‐hand car, the transaction is included inthe calculation of GDP in the year the sale took place.(3) A deficit on the current account of the balance of payments indicates thatthe country exported more than it imported during the period in question.(4) In the base year, the value of nominal GDP is equal to the value of real GDP.
Based on the Balance of Payments account presented in this table, the net exports are: a. 2300 b. -2600 c. -300 d. -200
4. Analyzing the effects of a trade deficit You have just been hired by the U.S. government to analyze the following scenario. Suppose the U.S. agricultural industry is concerned about of fruit and vegetable imports to the United States, a practice that hurts domestic producers. Lobbyists claim that implementing a tariff on imp would shrink the size of the trade deficit. The following exercise will help you to analyze this claim. The following graph shows the demand and supply of U.S. dollars in a model of the foreign-currency exchange market. Shift the demand curve, the supply curve, or both to show what would happen if the government decided to implement the tariff. REAL EXCHANGE RATE (Units of foreign currency per dollar) Supply QUANTITY OF DOLLARS Demand Demand 0 Supply
I am a bit confused on how to identify whether the problems are decreasing/increasing in Net Exports and Net Capital Flow
Using the method introduced in the video calculate Net National Product. Show answer choices $6,565 $6,665 $6,765 $6,865\table[[ Dollar Values], [Durable Goods, $150 Durable Goods Services Consumption Depreciation Investment Government Purchase Exports Income Receipts from the rest of the world Nondurable Goods Net Exports Income payments to the rest of the world Dollar Values $150 $900 $1,300 $250 $3,150 $2,800 $2,000 $35 $250 -$350 $20
Question: What is the term for a situation where a country exports more goods and services than it imports? A) Trade deficit B) Current account surplus C) Budget deficit D) Fiscal surplus
2. The current account of the balance of payments is calculated as: a. the sum of imports, exports, and transfers. b. the sum of national income and national expenditure. c. the sum of the trade balance, net factor income from abroad, and net unilateral transfers. d. the difference between GDP and GNE.
Do foreign direct investments have direct impact on gross domestic product?
Please solve and show steps. I do not understand how 10 Billiong, -12billion is the answer.
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REAL EXCHANGE RATE (Units of foreign currency per dollar) QUANTITY OF DOLLARS Given this change, the dollar Supply Change due to a quota Demand Demand Supply Fill in the following table with the effect of a quota on the following items: Supply of Loanable Funds Real Interest Rate National Saving Net Exports