Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 26, Problem 27APA
To determine
Determine the private sector and the government sector balance.
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Find US net export (current account balance) and its relation with US savings and investment. Draw a figure to show it.
Using the data calculate the balance on current account for this
economy.
The value of the current account is: $
Round your solution to the nearest whole number and be sure to
include a negative sign if necessary.
Current Account
Exports of Goods
Imports of Goods
Balance of Trade
Exports of Services
Imports of Services
Balance of Services
Income Received on
Investments
Income Payments on
Investments
Net Income on
Investments
Net Transfers
Value
$900
1300
350
-300
200
-900
Balance
- 400
50
- 700
-100
How much is the difference between the cross-exchange rates for Rupees (India) and Euro (europe)Â Â Show any calculations. Explain the reason for that difference.
Chapter 26 Solutions
Macroeconomics
Ch. 26.1 - Prob. 1RQCh. 26.1 - Prob. 2RQCh. 26.1 - Prob. 3RQCh. 26.1 - Prob. 4RQCh. 26.1 - Prob. 5RQCh. 26.1 - Prob. 6RQCh. 26.1 - Prob. 7RQCh. 26.2 - Prob. 1RQCh. 26.2 - Prob. 2RQCh. 26.2 - Prob. 3RQ
Ch. 26.2 - Prob. 4RQCh. 26.2 - Prob. 5RQCh. 26.2 - Prob. 6RQCh. 26.3 - Prob. 1RQCh. 26.3 - Prob. 2RQCh. 26.3 - Prob. 3RQCh. 26.3 - Prob. 4RQCh. 26.4 - Prob. 1RQCh. 26.4 - Prob. 2RQCh. 26.4 - Prob. 3RQCh. 26 - Prob. 1SPACh. 26 - Prob. 2SPACh. 26 - Prob. 3SPACh. 26 - Prob. 4SPACh. 26 - Prob. 5SPACh. 26 - Prob. 6SPACh. 26 - Prob. 7SPACh. 26 - Prob. 8SPACh. 26 - Prob. 9SPACh. 26 - Prob. 10SPACh. 26 - Prob. 11APACh. 26 - Prob. 12APACh. 26 - Prob. 13APACh. 26 - Prob. 14APACh. 26 - Prob. 15APACh. 26 - Prob. 16APACh. 26 - Prob. 17APACh. 26 - Prob. 18APACh. 26 - Prob. 19APACh. 26 - Prob. 20APACh. 26 - Prob. 21APACh. 26 - Prob. 22APACh. 26 - Prob. 23APACh. 26 - Prob. 24APACh. 26 - Prob. 25APACh. 26 - Prob. 26APACh. 26 - Prob. 27APACh. 26 - Prob. 28APACh. 26 - Prob. 29APA
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- A currency depreciates if it buys less of a foreign currency than it did before. The US dollar depreciated against what currency(a) from month 1 to month 2? Explain using the chartarrow_forwardHere are data for the U.S. balance of payments in a given year. All figures are in billions of dollars. Answer all of the following: a.The balance of trade in goods and services is $____billion. Balance of trade= (1635+709)-(478+2371)= -505 b. The current account balance is $____billion. Current account= (-505+218)= -287. (-287-124)= -411 c.The capital and financial account balance is $____billion. Capital and financial account= (1044-632)=412. (412-1)=411 d. The overall balance of payments balance is $____ billion. Explain why this must be so. balance of payments= -411+411= 0 Here's is the information table: Foreign purchases of US assets - 632 Goods imports - 2,371 Service imports - 478 Net investment income +218 Service exports +709 Goods exports +1,635 Balance on the capital account -1 Net transfers -124 US purchases of assets abroad +1,044 Can you please check if my answer is correct and explain to me why answer d the overall balance of payments must be so?arrow_forwardFind the value of Balance of trade if the value of the exports are 6500 and the value of the imports are 6200arrow_forward
- Using the data calculate the balance on current account for this economy. The value of the current account is: $ Round your solution to the nearest whole number and be sure to include a negative sign if necessary. Current Account Value Balance Exports of Goods $500 Imports of Goods 1600 Balance of Trade - 1100 Exports of Services Imports of Services Balance of Services 350 -300 50 50 Income Received on 400 Investments Income Payments on -700 Investments Net Income on -300 Investments Net Transfers -100arrow_forwardConsider this table, which shows hypothetical balance-of-payments data for the United States. Select the correct value for each of the boxes. Simplified Balance of Payments (Billions of Dollars) Account Net Balance Merchandise Services Income Unilateral Transfers Current Account Financial Account Statistical Discrepancy Trade Balance -5 -3 -2 +10 -3 0 an American business owner purchases chocolates from Belgium in order to sell them in her shops. This would be entered as a the section of the U.S. current account. The net value of the merchandise and services accounts combined gives the value of I + G + X. If you rewrite the equation as X = GDP - (C+1+G), you can see that the current_ item under within the national income accounting equation GDP = C + U.S. value of X implies that This means that the United States is producing than it is consuming, making it a Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts. Because the…arrow_forwardeBook Print References Consider the data in the table below: Nominal Exchange Rates for the U.S. Dollar yen Foreign currency/0.5. U.S. dollars/foreign Country United Kingdom (pound) Canada (Canadian dollar) Mexico (peso) Japan (yen) European Union (euro) a. Calculate the nominal exchange rate between the Mexican peso and the Japanese yen. Express in two ways. Instructions: Enter your responses rounded to three decimal places. One peso = peso dollar 0.612 0.968 11.654 81.126 0.698 peso. currency 1.633 One yen b. Suppose the peso appreciates by 20 percent against the dollar while the value of the yen against the dollar remains unchanged. Instructions: Enter your responses rounded to three decimal places. One peso yen One yen 1.033 0.086 0.012 1.433arrow_forward
- What does it mean when the dollar appreciates compared to when the dollar depreciates? Â Has the US dollar been relatively strong or weak over the past year? Â How does the strength of the dollar affect exports and imports?arrow_forwardOn June 23, 2016, citizens of the United Kingdom voted in favor of a referendum to leave the European Union. The table below shows the exchange rate between the U.S. dollar and the British pound 4 months before and 4 months after the vote. Complete the table, giving all answers to three decimals. Date February 23, 2016 June 23, 2016 October, 23, 2016 Exchange Rates Between the U.S. Dollar and the British Pound Units of foreign currency you can Number of U.S. dollars required to buy one buy with 1 U.S. dollar unit of the foreign currency 0.713 0.671 1.22arrow_forwardConsider the following data from the UK's national accounts in 2015. What is the UK's current account balance? Imports of goods & services 327,000 Net transfers 18.000 Exports of goods & services 422,000 Net interest 6,000 A. -107,000 B. -83,000 C. 119,000 D. 83,000arrow_forward
- What is the difference between the balance of trade and the balance of payments? Multiple Choice O The balance of trade is only part of the balance of payments. The balance of payments is only part of the balance of trade. The two are different parts of the balance of merchandise accounts. The two are different parts of the balance of financial and capital accounts.arrow_forwardA Canadian professor is paid to teach a summer course in Singapore for 8 weeks. How is the transaction recorded on Canada's balance of payments accounts? debit: service trade; credit: capital and financial account debit: income balance; credit: capital and financial account debit: capital and financial account; credit: service trade debit: capital and financial account; credit: income balancearrow_forwardUsing the table below, Calculate the Net Barter term of trade for each year using 2010 as the base year. YEAR PRICE OF EXPORTS PRICE OF IMPORTS QUANTITY EXPORTED 2010 100 100 100 2011 95 120 110 2012 80 110 120arrow_forward
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