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QUESTION 15 What balances in balance of payment calculations exports and imports

ID: 1143559 • Letter: Q

Question

QUESTION 15 What balances in balance of payment calculations exports and imports. exports and short term income balances. the capital and current accounts. exports minus imports (plus a statistical discrepancy) with short term income movements. QUESTION 16 Over the last 50, as a percentage of GDP foreign investment in the U.S. has O grown faster than U.S. investment abroad decreased O grown more slowly than U.S. investment abroad. O as the result of an accounting identity, grown at exactly the same rate as U.S. investment abroad. QUESTION 17 In the market for a foreign currency, the curve that represents the "willingness of those who have foreign currency to price curve. equilibrium curve. supply curve demand curve.

Explanation / Answer

15 The correct option is part c) because balance of payments (BOP) = Current account + Capital account. Current account include balance in trade and capital account involves balance in financial assets.

16 option b) because the markets in US are already developed.

17) The correct option is d) because they want to buy US dollar thus are on the demand side.

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