ECO 2020 INCLUSIVE ACCESS
21st Edition
ISBN: 9781260564617
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 41, Problem 3DQ
To determine
The balance of payments.
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What do the plus signs and negative signs signify in the U.S. balance-of-payments statement? Which of the following items appear in the current account and which appear in the capital and financial account? U.S. purchases of assets abroad; U.S. services imports; foreign purchases of assets in the United States; U.S. goods exports; U.S. net investment income. Why must the current account and the capital and financial account sum to zero?
Which of the following would most likely be included in the positive side of the U.S. current account balance?
a.
U.S. foreign aid sent to as disaster relief to Haiti
b.
interest payments to foreign investors invested in the U.S.
c.
money earned by U.S. firms in Europe
d.
money spent by U.S. tourists in Europe
The following table shows a hypothetical balance-of-payments statement for the United States. All figures are in billions of dollars.
Complete the table by filling in the missing cells.
Balance of Payments (Billions of U.S. dollars)
Current Account
Goods and Services Exports
200
Goods and Services Imports
-182
Trade Balance
Income (net)
-10
Current Account Balance
Capital Account
U.S. Capital Inflow
80
U.S. Capital Outflow
-60
Capital Account Balance
Statistical Discrepancy
According to the table, the United States is running a trade .
The net balance of payments equals
billion.
Chapter 41 Solutions
ECO 2020 INCLUSIVE ACCESS
Ch. 41.1 - Prob. 1QQCh. 41.1 - Prob. 2QQCh. 41.1 - Prob. 3QQCh. 41.1 - Prob. 4QQCh. 41.A - Prob. 1ADQCh. 41.A - Prob. 1ARQCh. 41.A - Prob. 1APCh. 41 - Prob. 1DQCh. 41 - Prob. 2DQCh. 41 - Prob. 3DQ
Ch. 41 - Prob. 4DQCh. 41 - Prob. 5DQCh. 41 - Prob. 6DQCh. 41 - Prob. 7DQCh. 41 - Prob. 8DQCh. 41 - Prob. 9DQCh. 41 - Prob. 10DQCh. 41 - Prob. 11DQCh. 41 - Prob. 1RQCh. 41 - Prob. 2RQCh. 41 - Prob. 3RQCh. 41 - Prob. 4RQCh. 41 - Prob. 5RQCh. 41 - Prob. 6RQCh. 41 - Prob. 7RQCh. 41 - Prob. 8RQCh. 41 - Prob. 9RQCh. 41 - Prob. 10RQCh. 41 - Prob. 1PCh. 41 - Prob. 2PCh. 41 - Prob. 3PCh. 41 - Prob. 4PCh. 41 - Prob. 5P
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