Briefly explain in what sense a country can run a balance of payments surplus or deficit. How

Question:

Briefly explain in what sense a country can run a balance of payments surplus or deficit.

How would a country finance a balance of payments deficit in this sense? What important differences are there between how a U.S. balance-of-payments deficit can be financed and how other countries must finance their balanceof-

payments deficits?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Money Banking And The Financial System International Edition

ISBN: 978-1292000183

2nd Edition

Authors: R. Glenn Hubbard ,Anthony P Obrien

See More Books

Question Posted: Mar 18, 2024 08:54 AM

See More Questions

Why must the current account balance plus the financial account balance equal zero? Briefly explain in what sense a country can run a balance-of-payments surplus or a balance-of-payments deficit.
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
Note: A free response paper is a short essay which conveys your reaction to article you have read.. Do a free response reflection paper on Lincoln and the Global Economy posted under Week 5....
Show that 1. Every differentiable concave function is pseudoconcave. 2. Every pseudoconcave function is quasiconcave
Chemet manufactures chemicals in a continuous process. The company combines various materials in a specially configured machine at the beginning of the process, and conversion is considered uniform...
Was a consideration related to the patients condition not discussed?
On May 8, 2013, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 800,000 pesos on February 10, 2014. Jett prepares quarterly...
On April 1, 2011, Bay delivers merchandise to Ram for 200,000 pesos when the spot rate for pesos is 6.0496 pesos. The receivable from Ram is due May 30. Also on April 1, Bay hedges its foreign...
On November 13, Underhill incorporated, a calendar year taxpayer, purchased a business for a $965 700 lump-sum price: The business's balance sheet assets had the following appraised FMV Accounts...
Why has support for a system of fixed exchange rates tended to be higher in Europe than in the United States?
Can a foreign exchange intervention by the Fed change the exchange rate if the Fed does not change its target for the federal funds rate? If the Fed wanted to carry out a foreign exchange...
The Youngs modulus (see P2.40) of muscle fiber is approximately 2.80 10 7 Pa. A muscle fiber 3.25 cm in length and 0.125 cm in diameter is suspended with a mass M hanging at its end. Calculate the...
The Penguin Textile Company sells shirts for men and boys. Results for January 2 0 2 3 are summarized below. Men's Boy's Total Revenue $ 1 7 2 , 8 0 0 $ 7 2 , 0 0 0 $ 2 4 4 , 8 0 0 Variable costs 1 2...
SINGLE, MARRIED FILING SEPERATELY, OR HEAD OF HOUSEHOLD SINGLE, MARRIED FILING SEPERATELY, OR HEAD OF HOUSEHOLD Over $0 $12,500 $50,000 But Not Over $12,500 $50,000 Tax Due Is 4% of taxable income...
17. S T D -3 -2 graph of glx) 2 The graph of the continuous function g is shown above for -46x4. The Function g is twice differentiable, except at x=0. let & be the function with flo1=-2 and f'(x) =...
Tim works for HydroTech, a manufacturer of high-pressure industrial water pumps. He reports directly to the CFO, and she has asked him to calculate HydroTech's WACC. He has gathered the following...
You are appraising a 15,450 square foot (SF) building and using the Cost Approach. The base cost is $50/SF, the local multiplier is 1.05, the current cost multiplier is 0.92. The land value is...
Distinguish between mentoring and coaching. What is reverse mentoring?
Periwinkle Company is a multinational organization. Its Parts Division is located in Lavender Land, while its Assembly Division is located in North Orchid. During the current year Periwinkle Companys...
Which of the following are lags in monetary policy? a. Information lag and impact or effectiveness lag b. Velocity lag and turnover lag c. Interest rate lag and unemployment lag d. Output lag and...
What problems with the Taylor Rule does the Mankiw Rule attempt to address?
According to the Taylor Rule, if the real federal funds rate equals 2%, the inflation target rate is 2%, the actual inflation rate is 4%, and the economy is at the full employment level of output,...
Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all - equity firm that specializes in this business. Suppose Harburtin ' s equity beta is 0 . 8 7 , the...
Ned Allen opened a medical practice in Los Angeles, California, and had the following transactions during the month of January. (Click the icon to view the January transactions.) Journalize the...
do you need more information or are you working on this? Irene Watts and John Lyon are forming a partnership to which Watts will devote one- half time and Lyon will devote full time. They have...

Briefly explain in what sense a country can run a balance of payments surplus or deficit. How

Question:

Step by Step Answer:

A country runs a balance of payments surplus when its receipts from exports of goods and services income from investments abroad and transfers from foreign entities exceed its payments for imports of ...View the full answer

Money Banking And The Financial System International Edition

Students also viewed these Business questions