Question

In 2023 the country of Emland had a current account deficit of $0.8 billion and a nonreserve financial account surplus of $500 million. Emland's capital account is in a $80 million surplus. In addition, Emland's factors located in foreign countries earn $550 million. Emland has a trade deficit of $450 million. Assume Emland neither gave nor received unilateral transfers. Emland's GDP is $8.4 billion.

3.1. Has Emland added to its net external assets or net external liabilities during the year? What does it mean in terms of purchases of Emland's assets by foreigners and purchases of foreign assets by Emlanders?

3.2. Compute the official settlements balance (OSB). Based on this number, what happened to the central bank's (foreign) reserves?

3.3. Compute net factor income from abroad (NFIA). How much have the foreign factors of production earned in Emland in 2023?

3.4. Verify that BOP identity holds for Emland data.

3.5. Compute Emland's gross national expenditure (GNE), gross national income (GNI), and gross national disposable income (GNDI). (3 points)