Question: In Table 16.1, pick a row that is part of the current account and assume that the value in that row goes up by $100

In Table 16.1, pick a row that is part of the current account and assume that the value in that row goes up by $100 billion. Explain four different ways that other rows in the table could change so that the rows will still add up to zero, in each case explaining what the economic meaning of the change in the row is (as was done in the discussion of private remittances in Section 16.2.3).

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Suppose that line 3 Imports of goods and services goes up by 100 bn meaning that the entry in line 3 ... View full answer

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