9. This question asks you to compute valuation effects for the United States in 2004, using the same methods mentioned in the chapter. Use the bea.gov website to collect the data needed for this question: look under the “International” heading isit the BEA’s balance of payments data page and obtain the U.S. balance of payments for 2004 in billions of dollars. Be sure to get the correct year, and annual data, not quarterly.
Visit the BEA’s net international investment position data page and obtain the U.S. net international investment position for end 2003 to end 2004.

a. What was the U.S. current account for 2004?

b. What was the U.S. financial account for 2004?

c. What was the U.S. change in external wealth for 2004?

d. What was the U.S. total valuation effect for 2004?

e. Does the answer to part

(d) equal the answer to part

(e) minus the answer to part (c)? Why?

f. What do the BEA data indicate was the U.S.
valuation effect due to exchange rate changes for 2004?
You may now assume that the U.S. dollar depreciated by 10% against major currencies in 2004, and use this average to estimate valuation effects.