Which component of the balance of payments accounts is affected by the following economic developments? Make sure to explain your answers for each. 1. A U.S. company sells a brand new airplane to an Australian airline. 2. German investors buy stocks in an American parcel shipping service. 3. South Vietnam purchases from the United States a fleet of used machines for chewing up old asphalt when resurfacing roads. The United States ships the entire fleet to South Vietnam. 4. A Russian oligarch who owns homes in the United States buys a luxury corporate yacht, which he keeps in the United States. 5. The Amazon Basin floods for nearly a week, causing massive loss of property, record breaking damages, and several hundred deaths. The U.S. government approves sending a foreign aid package to help the worst hit countries: Peru, Bolivia, and Brazil. Assume there are only two countries, country C and country J. 6. If country C is running a current account surplus, what must be true of Country J's financial account? Explain. 7. Draw a graph of the loanable funds market in country J and show how an increase in Country C's current account surplus affects the supply of loanable funds and the equilibrium interest rate. Make sure you label all axes and curves. 8. When talking about the current account and the capital account it is important to remember that they are two separate entities, but economists say that they must balance. In your own words, explain what each account measures and why they must net zero. Use the example of a country with a trade imbalance. 9. Let's say that a country has experienced current account surpluses for several years in a row. What could be the main causes of these surpluses and is it desirable to have continuous current account surpluses year after year? 10. Assume a business organization in Ireland invests in a foreign based company. Is this transaction a debit or a credit for Ireland and what account within the balance of payments is it a part of