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In 2019 the country of Farland has a current account deficit of $900 million.Farland's capital account is in a $100 million surplus.In addition, Farland factors
In 2019 the country of Farland has a current account deficit of $900 million.Farland's capital account is in a $100 million surplus.In addition, Farland factors located in foreign countries earn $600 million.Farland has a trade deficit of $400 million.Assume that Farland neither gives nor receives unilateral transfers.Farland's GDP is $8 billion.
- What happen to Farland's net foreign assets during 2019?Did it acquire foreign assets or foreign countries acquire Farland's assets during the year?
- How much income did foreign factors of production earn in Farland during 2020? Do foreign factors (located in Farland) earn more or less than Farland's factors (located abroad)?
- Calculate Farland's gross national expenditure (GNE), gross national income (GNI), and gross national disposable income (GNDI).Please show your work.
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