We consider two fictitious economies A and B with the following balance sheet on foreign assets and liabilities. Assets and liabilities are expressed in the countries domestic currency and their currency composition is written in parenthesis. For the whole exercise, GDP in domestic currency is constant in both countries. Country A Country B Suppose that the foreign currency appreciates by 10% over a year. b. Provide the balance sheet on foreign assets and liabilities of both countries, assuming a zero current account balance over this period. Compute the net foreign asset position one year after. What is the size of the capital gains and losses on the NFA over this period for both countries? We consider two fictitious economies A and B with the following balance sheet on foreign assets and liabilities. Assets and liabilities are expressed in the countries domestic currency and their currency composition is written in parenthesis. For the whole exercise, GDP in domestic currency is constant in both countries. Country A Country B Suppose that the foreign currency appreciates by 10% over a year. b. Provide the balance sheet on foreign assets and liabilities of both countries, assuming a zero current account balance over this period. Compute the net foreign asset position one year after. What is the size of the capital gains and losses on the NFA over this period for both countries