Ch 5 Global Trade [AP & Reg]

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Unformatted text preview: ich of the following must be true? (16%) country a. It must also show a deficit in its capital account. b. It must show a surplus in its capital account. c. It must increase the purchases of foreign goods and services. d. It must increase the domestic interest rates on its bonds. e. It must limit the flow of foreign capital investment. U.S. Goods export………………….…….…..+$100 U.S. U.S. Goods imports……………………………...-80 U.S. Service exports…………………………... +40 U.S. U.S. Service imports………………………….…-90 Net Investment income………………..……….+20 Net transfers………………………………….…..-15 Balance on capital account …………………….-5 …………………….-5 Foreign purchase of assets in the U.S………+45 U.S. purchases of assets abroad……………..-10 Official Reserves…………………………………. -5 1. The U.S. is experiencing a balance on goods (deficit/surplus) of ($10/$20/$30) billion. 2. The U.S.’s balance on goods & services is a (deficit/surplus) of ($30/$40) billion. 3. The U.S.’s balance on the current account is a (deficit/surplus) of ($25/$35). 4. The balance on the capital and financial account is a (surplus/deficit) of ($25/$30/$40). 5. The U.S. is experiencing a balance of payments (surplus/deficit) of $5. [don’t include official reserves here] 6. The “o...
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This note was uploaded on 07/20/2012 for the course ECON 2106 at GCSU.

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