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 Export a car Import a machine $ Sell a domestic apartment to foreigners Buy a foreign stock from foreigners $ Total 43,000 $ 65,000 Net Exports $ (22,000) 39,000 $ 5,000 Total Private Capital Flows 34,000 82,000 $ 70,000 $ 12,000 Total "above the line" Private Sector
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