The following data are extracted from the Worldbank and IMF indicators.

Assume the Capital Account, Net Errors and Omissions and Valuation adjustments are all zero. LCU means local currency unit.

	Indicator	Australia
2020, %	M/GDP	20.1
2020, %	TB/GDP	3.9
2020, %	CA/GDP	2.7
2020, billions LCU	GDP	1,968
2020, LCU	TB	77
31/12/2019, %	NIIP	-40

1. (5 points) What was the ratio of exports to GDP in Australia in 2020? Explain what the trade balance is.
2. (5 points) What was the ratio of the Net Income Balance to GDP in Australia in 2020? What wad does Net Income Balance mean?
3. (5 points) What is the Net International Investment Position (NIIP) as a percentage of GDP at the end of 2020? What does the NIIP represent?
4. (5 points) Is the Australian CA/GDP ratio in 2020 consistent with this country's historical experience in the previous 30 years or so? Assume that the CA/GDP stays at about +3% for the next, say 10-15 years, what will happen to the NIIP? What does that imply regarding the relationship between domestic savings and domestic investment?