Consider the following Balance of Payments information for the private sector ("above the line"). If the central bank ha
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Consider the following Balance of Payments information for the private sector ("above the line"). If the central bank ha
Consider the following Balance of Payments information for the private sector ("above the line"). If the central bank had $100,000 of international reserves, what would be their new international reserves after they balance the BOP? Private Sector Total Export a car $ 43,000 Import a machine $ 65,000 Net Exports $ (22,000) Sell a domestic apartment to foreigners $ 39,000 Buy a foreign stock from foreigners $ 5,000 Total Private Capital Flows 34,000 Total "above the line" Private Sector 82,000 $ 70,000 $ 12,000 O BI 2
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