According to the Bureau of Economic Analysis (BEA), the level of external assets in the U.S....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
According to the Bureau of Economic Analysis (BEA), the level of external assets in the U.S. was $32.2 trillion at the end of 2020, and its external liabilities stood at $46.2 trillion. Suppose that the U.S. dollar is expected to appreciate by 8% against major currencies over the course of 2021. a) If, at the end of 2020, 90% of the external assets were denominated in foreign currencies and 10% in U.S. dollars, what will be the expected change in U.S. external assets (in $) resulting from the dollar appreciation in 2020 (i.e., the exchange-rate effect)? Show your calculations (with a positive number indicating an increase in external assets or a negative number representing a decrease). b) If, at the end of 2020, 5% of the external liabilities were denominated in foreign currencies and 95% in U.S. dollars, what will be the expected change in U.S. external liabilities (in $) resulting from the dollar appreciation in 2020 (i.e., the exchange-rate effect)? Show your calculations (with a positive number indicating an increase in external liabilities or a negative number representing a decrease). c) What will be the expected change in U.S. external wealth (in $) resulting from the dollar appreciation in 2020 (i.e., the exchange-rate effect)? Show your calculations (with a positive number indicating an increase in external wealth or a negative number representing a decrease). According to the Bureau of Economic Analysis (BEA), the level of external assets in the U.S. was $32.2 trillion at the end of 2020, and its external liabilities stood at $46.2 trillion. Suppose that the U.S. dollar is expected to appreciate by 8% against major currencies over the course of 2021. a) If, at the end of 2020, 90% of the external assets were denominated in foreign currencies and 10% in U.S. dollars, what will be the expected change in U.S. external assets (in $) resulting from the dollar appreciation in 2020 (i.e., the exchange-rate effect)? Show your calculations (with a positive number indicating an increase in external assets or a negative number representing a decrease). b) If, at the end of 2020, 5% of the external liabilities were denominated in foreign currencies and 95% in U.S. dollars, what will be the expected change in U.S. external liabilities (in $) resulting from the dollar appreciation in 2020 (i.e., the exchange-rate effect)? Show your calculations (with a positive number indicating an increase in external liabilities or a negative number representing a decrease). c) What will be the expected change in U.S. external wealth (in $) resulting from the dollar appreciation in 2020 (i.e., the exchange-rate effect)? Show your calculations (with a positive number indicating an increase in external wealth or a negative number representing a decrease).
Expert Answer:
Answer rating: 100% (QA)
ANSWERA Total resources in the US 322 trillion US dollarnamed resources 10 of 322 trillion 322 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
According to the Bureau of Justice Statistics (September 2013), 80% of all licensed drivers stopped by police are 25 years or older. Give a percentile ranking for the age of 25 years in the...
-
According to the Bureau of Labor Statistics publication News, self-employed persons with home-based businesses work a mean of 25.4 hours per week at home. Assume a standard deviation of 10 hours. a....
-
According to the Bureau of Labor Statistics, there are 777,000 men and 588,000 women in the life, physical, and social science occupations category; and 786,000 men and 204,000 women in the farming,...
-
Consider a property investment that you finance with 20% down payment. For the remaining, you borrow 2'300'000 at a 6% rate monthly amortized loan for 25 years. This property, with 2% of EBITDA as...
-
A sample of 300 orders for take-out food at a local pizzeria found that the average cost of an order was $23 with s = $15. (a) Find the margin of error for the average cost of an order. (b) Interpret...
-
Create a bubble chart for the first five colleges in the Excel file Colleges and Universities for which the x- axis is the Top 10% HS, y- axis is Acceptance Rate, and bubbles represent the...
-
Discuss the differences among verbal, written, and implied consent.
-
The chapter states that forecasts of financial statements should rely on the additivity within financial statements and the articulation across financial statements to avoid internal inconsistencies...
-
Suppose and based on the publication of the Ministry of Health, Pizza is considered a harmful item and causes overweight problems, and this leads to consumption reduction. Explain graphically the...
-
On December 1, 2020, Papadopoulos Seasonings had the following account balances. During December, the company completed the following transactions. Dec. 7 Received 3,600 cash from customers in...
-
While creating a satisfied workforce does not guarantee organizational success, there are indeed benefits to high job satisfaction. What are some outcomes/consequences of high job satisfaction? Based...
-
Sketch the requested conic sections in Problems 14-23 using the definition. A circle with radius 3
-
Refer to Granville Steel Parts in E7-28A. The owner feels like hes in a giant squeeze play: The automotive manufacturers are demanding lower prices, and the steel producers have increased raw...
-
Wellington Medical Supply is a retailer of home medical equipment. Last year, Wellingtons sales revenues totaled \($6,300,000\). Total expenses were \($2,200,000\). Of this amount, approximately...
-
A computer manufacturer is considering outsourcing its technical support call center to India. Its current technical support call center is located in Dellroy, Ohio. The current call center is one of...
-
A beverage company is considering whether to discontinue its line of grape soda. What factors will affect the companys decision? What is a qualitative factor? Which of the factors you listed are...
-
(Yield to maturity) Assume the market price of a 6-year bond for Margaret Inc. is $925, and it has a par value of $1,000. The bond has an annual interest rate of 7% that is paid semiannually. What is...
-
Wilsons Auto Repair ended 2011 with Accounts Receivable of $85,000 and a credit balance in Allowance for Uncollectible Accounts balance of $11,000. During 2012, Wilsons Auto Repair had the following...
-
The number of cell phone users has increased dramatically since 1987. According to the Semi-annual Wireless Survey, published by the Cellular Telecommunications & Internet Association, the mean local...
-
Line A: y = 3 0.6x Line B: y = 4 x a. Graph the linear equations and data points. b. Construct tables for x, y, Ëy, e, and e 2 similar to Table 4.4 on page 151. c. Determine which line fits the...
-
The U.S. Census Bureau publishes data on the population of the United States by race and Hispanic origin in American Community Survey. From that document, we constructed the following bar chart. Note...
-
In Example 9.13, the following finite distributed lag model was estimated for Okun's Law using the data file okun5_aus. a. Find the correlogram of the least squares residuals for this model. Is there...
-
Using the data file phillips5_aus, estimate the equation a. Find the first eight lag weights (delay multipliers) of the infinite distributed lag representation that corresponds to this model. What is...
-
Using the data file phillips5_aus, estimate the equation a. Find the first eight lag weights (delay multipliers) of the infinite distributed lag representation that corresponds to this model. What is...
Study smarter with the SolutionInn App