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The following table gives information about transactions on the Balance of Payments accounts of Country X denoted in USD ($) Transaction Value (5) Exports 70%

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The following table gives information about transactions on the Balance of Payments accounts of Country X denoted in USD ($) Transaction Value (5) Exports 70% of trade balance Income received from holding foreign 300 Jassets Income paid to foreign residents from holding domestic assets Net transfers received 450 Trade balance 30% of the current account balance Increase in foreign holdings of domestic Jassets 200 Increase in domestic holdings of foreign Jassets 300 400 The current account balance in Country X is (Round your answer to two decimal places) The statistical discrepancy in the Balance of Payments accounts of Country X is % of the current account balance, (Round your answer to two decimal places.) Mr. Black is a British Investor looking into two one-year maturity bonds, a U.S. bond, and a UK bond Mr. Black is unconcerned about the risk factors and other costs related to the bonds and is only looking to maximize his expected rate of return. The interest rate on the UK. bond() is 5% and the interest rate on the U.S. bond (/) is 7%. Suppose that the exchange rate is 1.35 dollars per pound in the current year. If there are no arbitrage possibilities between the two bonds, what should be the value of the expected nominal exchange rate (E* + y) for the next year? 1dollars per pound (Round your answer to two decimal places.) +1

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