Given the data on the US trade balance (known as net export) below: FRED Millions of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Given the data on the US trade balance (known as net export) below: FRED Millions of Dollars -20.000 -40.000 -30,000 -100.000 -120,000 -Trade Balance: Goods and Services, Balance of Payments Basis 1994 Shaded areas indicate US recessions 1996 2000 2002 Sources: U.S. Census Bureau US Bureau of Economic Analysis mupos 2014 2018 2020 2022 tred stlouisted org (5 points) During the pandemic, the US net export took a large dip (see arrow). How did this affect the trade deficit of the US? b. (10 points) Explain what might be causing this dip. c. (5 points) When US net export decreases (as shown in the graph), explain how this would affect the interest rate via the market for loanable funds. Include a graph for the market for loanable funds for full credit. Hint: Recall that we have this equation: Net Export= Net Capital Outflow We also have this equation: Saving Domestic Investment + Net Capital Outflow Supply of loanable funds Demand of loanable funds When Net Export decreases, what would happen to Net Capital Outflow? How would this affect the market for loanable fund? Given the data on the US trade balance (known as net export) below: FRED Millions of Dollars -20.000 -40.000 -30,000 -100.000 -120,000 -Trade Balance: Goods and Services, Balance of Payments Basis 1994 Shaded areas indicate US recessions 1996 2000 2002 Sources: US Census Bureau US Bureau of Economic Analysis mupos 2014 2018 2020 2022 fredstioulsted org (5 points) During the pandemic, the US net export took a large dip (see arrow). How did this affect the trade deficit of the US? b. (10 points) Explain what might be causing this dip. c. (5 points) When US net export decreases (as shown in the graph), explain how this would affect the interest rate via the market for loanable funds. Include a graph for the market for loanable funds for full credit. Hint: Recall that we have this equation: Net Export= Net Capital Outflow We also have this equation: Saving Domestic Investment + Net Capital Outflow Supply of loanable funds Demand of loanable funds When Net Export decreases, what would happen to Net Capital Outflow? How would this affect the market for loanable fund? Given the data on the US trade balance (known as net export) below: FRED Millions of Dollars -20.000 -40.000 -30,000 -100.000 -120,000 -Trade Balance: Goods and Services, Balance of Payments Basis 1994 Shaded areas indicate US recessions 1996 2000 2002 Sources: U.S. Census Bureau US Bureau of Economic Analysis mupos 2014 2018 2020 2022 tred stlouisted org (5 points) During the pandemic, the US net export took a large dip (see arrow). How did this affect the trade deficit of the US? b. (10 points) Explain what might be causing this dip. c. (5 points) When US net export decreases (as shown in the graph), explain how this would affect the interest rate via the market for loanable funds. Include a graph for the market for loanable funds for full credit. Hint: Recall that we have this equation: Net Export= Net Capital Outflow We also have this equation: Saving Domestic Investment + Net Capital Outflow Supply of loanable funds Demand of loanable funds When Net Export decreases, what would happen to Net Capital Outflow? How would this affect the market for loanable fund? Given the data on the US trade balance (known as net export) below: FRED Millions of Dollars -20.000 -40.000 -30,000 -100.000 -120,000 -Trade Balance: Goods and Services, Balance of Payments Basis 1994 Shaded areas indicate US recessions 1996 2000 2002 Sources: US Census Bureau US Bureau of Economic Analysis mupos 2014 2018 2020 2022 fredstioulsted org (5 points) During the pandemic, the US net export took a large dip (see arrow). How did this affect the trade deficit of the US? b. (10 points) Explain what might be causing this dip. c. (5 points) When US net export decreases (as shown in the graph), explain how this would affect the interest rate via the market for loanable funds. Include a graph for the market for loanable funds for full credit. Hint: Recall that we have this equation: Net Export= Net Capital Outflow We also have this equation: Saving Domestic Investment + Net Capital Outflow Supply of loanable funds Demand of loanable funds When Net Export decreases, what would happen to Net Capital Outflow? How would this affect the market for loanable fund?
Expert Answer:
Answer rating: 100% (QA)
Answer a 5 points The large dip in the US net export during the pandemic would have increased the US ... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
Students also viewed these economics questions
-
1. The Vice President of Finance at Kramerica, Inc. has determined a capital investment budget of $10M for the next year. Unfortunately, this amount is not sufficient to accept all positive NPV...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Describe how might trends mentioned in the article provided, affect decisions and strategies of corporations and managers; in consideration of areas such as growth, sales, production, alliances,...
-
For the inexperienced marketer, the similar-but-different aspect of culture creates an illusion of similarity that usually does not exist. Discuss and give examples.
-
Return to Starter 16-11 , the Heinz Ltd. investment in Kuzawa Corporation bonds. Journalize the following transactions on Heinz Ltd.'s books, along with an explanation: a. Purchase of the bond...
-
The data show the average wind speed for 30 days in a large city. Construct an ungrouped frequency distribution for the data. 8 15 8 10 12 9 9 13 13 8 9 13 9 98 14 8 8 13 10 11 11 9 9 9 8 9 9 8...
-
Vince Smith opened a law office on March 2, 2010. During the first month of operations, the business completed the following transactions: Requirements 1. Open the following T-accounts: Cash,...
-
The following are brief descriptions of several companies in different lines of business. A. Company A is a construction company. It has recently signed a contract to build a highway over a...
-
answer the question Specific to the sharing economy, some companies (i.e., Rent the Runway) purchase inventory for customers to use. This differs from other firms that rely on the inventory of...
-
Extend Example 20.3 to calculate CVA when default can happen in the middle of each month. Assume that the default probability during the first year is 0.001667 per month and the default probability...
-
Can a clock with a mechanical pendulum be used on the space shuttle to time experiments? Explain why or why not. Demonstrate using mathematical arguments regarding the period of a pendulum to support...
-
Discuss the following statements. a. The Phillips curve implies that when an economy is operating below full capacity, a significant increase in aggregate demand is likely to cause a reduction in...
-
You own a wholesale plumbing supply store. The store currently generates revenues of $1 million per year. Next year, revenues will either decrease by 9.6% or increase by 4.8%, with equal probability,...
-
You own a small networking startup. You have just received an offer to buy your firm from a large, publicly traded firm, JCH Systems. Under the terms of the offer, you will receive 1 million shares...
-
The natural rate of unemployment a. The Phillips curve is \(\pi_{t}=\pi_{t}^{e}+(m+z)-\alpha u_{t}\). Rewrite this relation as a relation between the deviation of the unemployment rate from the...
-
You expect HGH stock to have a 20% return next year and a 45% volatility. You have $25,000 to invest, but plan to invest a total of $50,000 in HGH, raising the additional $25,000 by shorting either...
-
The graph below gives the position x vs. t for a spot on rim of a rotating wheel. 30 x position (cm) M V N 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Time (s) 25 20 15 10 0 -10 -15 -20 -25 0.2 0.4 From the graph...
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
Glendale College is a private girls school and is operated as a not- for- profit organization. During 20X1 the school received $ 500,000 in private donations from individuals to establish a...
-
It has been a hectic year at Abdalla Lodge. In January 20X4, Myesha Kind incorporated Abdalla as a not- for- profit organization. Its mandate is to provide counselling services for troubled youth....
-
At the end of the fiscal year, December 31, 20X2, Avonlea Ltd. finds itself with two accounts receivable in pesos: 1. From a sale on July 1, 20X2, and due to be collected on December 1, 20X3, for...
-
Since the management of a company is responsible for its financial statements and the auditor is responsible only for the report, management may choose the form of presentation and the degree of...
-
For each one of the following statements indicate whether the statement is true or false. a. Use of a computer for significant accounting applications does not in any way change specific audit...
-
The following questions relate to the use of computer-assisted audit techniques. Select the best response. a. Which of the following is true of generalized audit software packages? 1. They can be...
Study smarter with the SolutionInn App