1.) In 2010, the United States economy exported goods worth $155 billion and services worth another $85 billion. It imported goods worth $238 billion and services worth $100 billion. Receipts of investment from abroad were $97 billion while income payments going to overseas investors were $127 billion. Government transfers from the United States to the rest of the world were $35 billion, while various U.S. government agencies received payments of $8 billion from the rest of the world.

a.) Complete the table below using the data provided.

b.) Highlight the U.S. merchandise trade deficit for 2010.

c.) Highlight the current account balance for 2010.

Current Account Balance

EXPORTS IMPORTS BALANCE

Goods

Services

Income Payments

Unilateral Transfers

Current Account Balance

2.) State whether each of the following events involves a financial flow to the US economy or a financial flow out of the US economy:

a.) US tourists travel in Japan

b.) Japanese investors receive a return from their investments in Hawaii

c.) Canadians spend 5 months living on Maui during winter months

3.) For each of the following, indicate whether that type of government spending would justify a running a larger budget deficit or may not justify a larger budget deficit.

a.) Increased federal spending on unemployment compensation during COVID-19 lockdown

b.) Increased spending to build a large wall along the Mexico - US border

c.) Increased funding to colleges