Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed
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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Economics questions

Question

How would you describe the work atmosphere?

Answered: 1 week ago