PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 17, Problem 17.5CC
To determine

Describe the relationship between the degree of currency overvaluation and the resulting of balance of payments.

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What is the meaning of a surplus (deficit) on the current account balance? What economic transactions give rise to the receipt of dollars from foreigners? What transactions give rise to payments to foreigners?
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Suppose that during a recent year for the United States, merchandise imports were $2 trillion, unilateral transfers were a net outflow of $0.2 trillion, service exports were $0.2 trillion, service imports were $0.1 trillion, and merchandise exports were $1.4 trillion. What was the merchandise trade deficit?       What was the balance on goods and services?       What was the current account balance?
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