Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 34, Problem 2IAPA
To determine
To calculate:
The current account balance, capital account balance, financial account balance, government sector and private sector balance.
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Question 2
Table 1 represents the components of the UAE current account balance during 2019-2020.
Table 1 Current Account Balance in Billion Dirhams
2019
2020
Exports:
Goods
1152.4
1003.0
228.2
Services
Total Exports
Imports:
Goods
331.5
856.9
774.1
Services
323.9
218.6
Total Imports
Net Exports
Net transfers + investment income net
Investment income Net
7.6
-1.7
Net transfers
Total Transfers
Current account Balance
Source Central Bank of UAE
-173.6
-159.7
1. Complete table 1
2. Interpret your results.
Here 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?
Examine the following table:
Value of Exports (in billions)
Value of Imports (in billions)
Balance
Goods
$100
$200
-$100
Services
$150
$100
$50
Income Receipts and Payments
$300
$200
$100
Unilateral Transfers
$30
$60
-$30
$580
$560
$20
The data highlighted in the last row of the table represent the:
A) Current Account Balance
B) Income Balance
C) Merchandise Trade Balance
Chapter 34 Solutions
Foundations of Economics (8th Edition)
Ch. 34 - Prob. 1SPPACh. 34 - Prob. 2SPPACh. 34 - Prob. 3SPPACh. 34 - Prob. 4SPPACh. 34 - Prob. 5SPPACh. 34 - Prob. 6SPPACh. 34 - Prob. 7SPPACh. 34 - Prob. 8SPPACh. 34 - Prob. 9SPPACh. 34 - Prob. 10SPPA
Ch. 34 - Prob. 1IAPACh. 34 - Prob. 2IAPACh. 34 - Prob. 3IAPACh. 34 - Prob. 4IAPACh. 34 - Prob. 5IAPACh. 34 - Prob. 6IAPACh. 34 - Prob. 7IAPACh. 34 - Prob. 8IAPACh. 34 - Prob. 1MCQCh. 34 - Prob. 2MCQCh. 34 - Prob. 3MCQCh. 34 - Prob. 4MCQCh. 34 - Prob. 5MCQCh. 34 - Prob. 6MCQCh. 34 - Prob. 7MCQCh. 34 - Prob. 8MCQ
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