Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 21, Problem 7P
To determine
To evaluate:
The statement which states that statistical discrepancy is equal to zero when the balance of payment is equals to
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In an economy the price of a basket of goods is 84 euros. In another economy the price of the same basket of goods is 234 crowns (the name of the local currency). Calculate the crown/euro
PPP exchange rate.
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Based on the Balance of Payments in the table below, what is the statistical discrepancy?
Explain very briefly about elasticity approach , national income approach , absorption approach , and monetary approach in balance of payments and specially current account balance.
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- Suppose you know that exports for a nation are $24 billion and imports are $25 billion, Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Complete the balance of payments table below using the information above. Current Account (billions) Credits 24 $ Financial Account (billions) Credits Capital Account (billions) Credits Debits Debits Debits $30 $26 $4 $7 b. What is the net balance of each account? Current account: $[ billion Financial account: $ billion Capital account: $ billion c. What is the sum of all accounts? %24 billionarrow_forwardDistinguish between Exchange Rate Method and Purchasing Power Parity as methods of comparing Country GDP in terms of either income or expenditure through an examplearrow_forwardSo, what has happened to the USD-EUR exchange rate over the past year or two? Can you tell anything about what you would do from looking at the trends? Has the USD appreciated or depreciated vs. the EURarrow_forward
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