4) Chapter 26: The Exchange Rate and the Balance of Payments a) Give an example of currency depreciation and appreciatio
Posted: Wed Mar 09, 2022 8:34 am
4) Chapter 26: The Exchange Rate and the Balance of Payments
a) Give an example of currency depreciation and appreciation. (5
pts)
b) What are the three balance of payments accounts? Briefly
describe them. What is the relationship among the three? (5
pts)
c) What are the main components of the current account? What has
been the recent U.S. experience with these items? (5 pts)
d) The table above gives some of the accounts of the United
States in 2023. (5 pts)
Item
Amount
(billions of dollars)
Investment
1,900
Saving
1,600
Government expenditure
1,000
Net taxes
1,700
i) What is the private sector balance?
ii) What is the government sector balance?
iii) What is net exports?
a) Give an example of currency depreciation and appreciation. (5
pts)
b) What are the three balance of payments accounts? Briefly
describe them. What is the relationship among the three? (5
pts)
c) What are the main components of the current account? What has
been the recent U.S. experience with these items? (5 pts)
d) The table above gives some of the accounts of the United
States in 2023. (5 pts)
Item
Amount
(billions of dollars)
Investment
1,900
Saving
1,600
Government expenditure
1,000
Net taxes
1,700
i) What is the private sector balance?
ii) What is the government sector balance?
iii) What is net exports?