Say that in 2015 international transactions between the U.S. and country X looked like this, where Z is some number greater than zero:

Goods exports from U.S. to country X: $150bn

Goods imports from country X to U.S.: $Zbn

Services exports from U.S. to country X: $200bn

Services imports from country X to U.S.: $60bn

Income payments from U.S. to country X: $80bn

Income payments from country X to U.S.: $40bn

Net unilateral transfers from U.S. to country X: $10bn

a) If the U.S. had a merchandise trade deficit, a trade surplus, and a current account surplus with country X in 2015, in what range must Z fall? Show your work.

b) Assuming no central bank foreign currency holdings, the financial account must be equal and opposite to the current account. Give a couple of examples of transactions that would be part of the financial account. In this example, are more financial account flows coming to the U.S. from country X, or going from the U.S. to country X?