FRED Exercise https://fred.stlouisfed.org

U.S. Net International Asset (Investment) Position/GDP

First, call up the series of thequarterlyevolution of the U.S.'s net international asset position (FRED Code =IIPUSNETIQ)since the beginning of the series through Q4 2020.

Note: these data are expressed on the graph as millions of dollars. So a value, say, of $4,375,257million dollars =$4,375.257 billion = $4.375275 trillion. (You do not have to print out (or attach) this graph.This is but an intermediate step.)(3 points, as indicated)

(i)What is the Q4 2020 value of the U.S.'s net international asset position intrillionsof dollars with two decimal places?(.5 points) (-

Now calculate the net international asset position as a percentage of quarterly annualized GDP.While not difficult, it's a bit tricky, since the net international asset position data are expressed in millions of dollars.

So, as in question #4, add the quarterly seasonally adjusted annual rate GDP data set (Fred code =GDP) to your original Net International Asset position graph, while in edit "Line 1."(Again, make sure you add the correct quarterly nominal (not real) GDP series.As before, when you type in "GDP," you'll have to scroll down to find the correct quarterly seasonally adjusted annual rate GDP series.)

Then you'll want to do transformation of your two data sets, "a" and "b."(Note that "a" is the U.S.'s net international asset position; "b" is nominal GDP.)How should you transform the series?Use the following simple expression:

"(a/1000 )/ b*100"

(This converts million to billions for series (a) and then takes the fraction of the converted-to-billions "a" series to the "b "series) and expresses the result as a percentage..)

The result is a graph depicting the evolution of the U.S.'s net international asset position as a percentage of GDP.(Note:our quarterly net international asset data are not seasonally adjusted; whereas our quarterly annual rate GDP data are.)

(ii)Print out this graph and submit it.

(iii)What is the Q4 2020 value of this measurement.(Express as a percentage, of course,rounded to three decimal points.)

(iv)Is the evolution of this ratio to date during the pandemic recession similar to that during of the Great Recession? What do you think will be the trajectory of this ratio over the next few years?Why?