Consider the balance of payments accounting information for FarawayLand as shown in the table below for the year 2018 All values are in billions of dollars a What is the trade balance b What is the current account balance c What is the change in FarawayLands net foreign assets d What is capital acc...

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Consider the balance-of-payments accounting information for FarawayLand as shown in the table below for the year 2018.

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Consider the balance-of-payments accounting information for FarawayLand as shown in the table below for the year 2018. All values are in billions of dollars.

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a. What is the trade balance?

b. What is the current account balance?

c. What is the change in FarawayLand’s net foreign assets?

d. What is capital account balance?

e. What is the balance of payments?

f. What exchange-rate regime does FarawayLand likely have? Explain your reasoning.

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Ragan Macroeconomics

ISBN: 978-0134835822

16th Edition

Authors: Christopher Ragan

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Consider the balance-of-payments accounting information for FarawayLand as shown in the table below for the year 2018.

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Exports Imports Net foreign-investment income Capital outflow from Canada (purchase of assets from foreigners) Capital inflow to Canada (sales of assets to foreigners) Changes in official international reserves 126 -105 -31 -26 36 0

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Ragan Macroeconomics

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