Unformatted text preview: They pay with a U.S. credit card. (f) The United States sends medicine, blankets, tents, and nonperishable food worth 400 million dollars to victims of an earthquake in a foreign country. 2. Indicate whether the statement is true, false, or uncertain and explain why. (a) The net international investment position of South Africa was -70.5 billion USD in 2010 and -19.7 billion USD in 2011. The current account in 2011 was -10.1 billion USD. There must be an error in the oﬃcial numbers. The correct ±gure should be a net international investment position of -80.6 billion USD in 2011. (b) The fact that the United States made large valuation gains on average over the past 30 years means that the rest of the world as a whole made equally large valuation losses. After all, this is a zero sum game. (c) The United States has large unrecorded foreign asset holdings. 1...
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- Fall '14
- Macroeconomics, United States dollar