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Please provide an answer and explanation of how to derive and understand the answer to each question for learning purposes and give final answer. 1.
Please provide an answer and explanation of how to derive and understand the answer to each question for learning purposes and give final answer.
1. For each of the following changes, other things equal, has the value of the country's current account balance increased (become more positive or less negative), decreased, or stayed the same? Briefly justify your answer. a. Total trade rises but net exports remain the same. Exports of goods and services increase by $10 billion and imports of goods and services increase by $10 billion. (6 points) b. The price of oil rises from $20/barrel in 2020 to $100/barrel in 2022 for a country whose oil export volume (# of barrels) remains the same. Oil is 95% of this country's exports. (6 points) . The price of oil rises from $20/barrel in 2020 to $100/barrel in 2022 for a country that is a net importer of oil. (6 points) d. Ukraine receives foreign aid of money grants from other countries to support them in the Ukraine-Russia War. (6 points)Step by Step Solution
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