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The Balance of Payments and National Accounts (Spts each) A Swiss firm makes an interest payment on a debt to an American bank by writing
The Balance of Payments and National Accounts (Spts each) A Swiss firm makes an interest payment on a debt to an American bank by writing a check on its account at that bank. In what categories would this transaction appear in the U.S. balance of payments? Suppose Home's Gross Domestic Product were less than its Gross National Expenditure and its Gross National Income. What can you infer from this information about the components of Home's balance of payments? Is a country that is running large financial account deficits likely increasing or decreasing its external wealth? Explain. Suppose that the external assets of the United States are primarily in euros while its external liabilities tend to be in dollars. If the dollar appreciates against the euro what does this mean for the net wealth of the United States? Explain. Everything else equal, what is the impact of military aid to the Ukraine on the current account of the Ukraine. Explain
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