- PART 1: FILL-INS (45 Points) 1) If Ford produces cars in England, in which country's GNP would the value of the cars be included? 2) If Nissan produces cars in the United States, in which country's GDP would the value of the cars be included? 3) If a foreign worker in the U.S. sends payments to relatives in his home country, how would this be classified in the Balance of Payments? 4) In the National Income and Product Accounts, how is spending on new housing classified? 5) What is the algebraic relationship between GNP and GDP? 6) If a French citizen buys a U.S. bond, where would this transaction appear in the Balance of Payments? 7) What impact does a depreciation of the dollar have on the U.S. Current Account balance? 8) What is U.S. portfolio investment? 9) If the exchange rate between the dollar and the pound is $1.50/ and the exchange rate between the dollar and the euro is $1.20/, what is the cross exchange rate between the euro and the pound (in euros per pound)