Shown below is a simplified balance of payments table for the United States. Use the information in the table to answer the questions below.
Amount
(in billions of dollars)
1. Exports of goods and services 1,500
2. Income receipts 600
3. Imports of goods and services -2,000
4. Income payments -800
5. Unilateral current transfers 0
6. U.S.-owned assets abroad?
7. Foreign-owned assets in the United States 1,100
8. Statistical discrepancy 0
Questions:
a. What is the value for the missing entry?
b. If U.S. GDP is $13,000 billion, what must U.S. GNI be?
c. What is U.S. GNE (i.e., C + I +G)?
d. If U.S. gross domestic investment (I) is $3,100 billion, what must U.S. gross national saving (S) be?
Shown below is a simplified balance of payments table for the United States. Use the information in the table to answer the questions below.
Amount
(in billions of dollars)
1. Exports of goods and services 1,500
2. Income receipts 600
3. Imports of goods and services -2,000
4. Income payments -800
5. Unilateral current transfers 0
6. U.S.-owned assets abroad?
7. Foreign-owned assets in the United States 1,100
8. Statistical discrepancy 0
Questions:
a. What is the value for the missing entry?
b. If U.S. GDP is $13,000 billion, what must U.S. GNI be?
c. What is U.S. GNE (i.e., C + I +G)?
d. If U.S. gross domestic investment (I) is $3,100 billion, what must U.S. gross national saving (S) be?
Related textbook solutions
Related questions
The following table lists balance of payment current accounts for Country A.
| Current Accounts | |||
| 1. | Exports of goods, services, and income | Ā | $169,928 |
| 2. | Goods, adjusted, excluding military | $94,068 | Ā |
| 3. | Services | 46,889 | Ā |
| 4. | Income receipts on U.S. assets abroad | 31,921 | Ā |
| 5. | Imports of goods, services, and income | Ā | 151,536 |
| 6. | Goods, adjusted, excluding military | 84,707 | Ā |
| 7. | Services | 32,289 | Ā |
| 8. | Income payments on foreign assets in the United States | 35,740 | Ā |
| 9. | Unilateral transfers, net | Ā | 9,481 |
|
A. What is Country A's total current accounts? _________$ Total current accounts B. What is Country A's balance on goods? _________$ Balance on goods C. What is Country A's balance on services? __________$ Balance on services D. What is Country A's balance on investment income? (Negative amount should be indicated by a minus sign.) __________$ Balance on investment income |
|||
| Exports of goods & services | $1000 |
| Imports of goods & services | $800 |
| The net change in assets owned abroad | $590 |
| The net change in foreign-owned assets at home | $400 |
| Unilateral transfers received | $100 |
| Unilateral transfers paid | $200 |
| Investment income paid to foreigners | $300 |
| Investment income received from foreigners | $400 |
| The balance on the capital account | $0 |
1. The balance on the current account is A) $100. B) $200. C) 0. D) - $100
2. The balance on the financial account is A) -$90. B) -$190. C) $100. D) $200
3. The statistical discrepancy is A) -$5. B) $5. C) $10. D) -$10
4. From the domestic economy's perspective,
A) there is a net international capital inflow equal to $190.
B) there is a net international capital outflow equal to $190.
C) the net international capital flow is zero.
D) its domestic absorption exceeds its GNP by $200.
QUESTION 10
Below is a table for the Balance of Payments of Goegania, a prosperous island nation.
| Current Account | Ā | Financial Account | ||||
| Exports of Goods | $1,940 | Ā | Capital Inflow | $661 | Ā | |
| Imports of Goods | ??? | Ā | Capital Outflow | $347 | Ā | |
| Trade Balance | Ā | ??? | Financial Account | Ā | ??? | |
| Exports of Services | $569 | Ā | Capital Account | Ā | $0 | |
| Imports of Services | ??? | Ā | Statistical Discrepancy | Ā | $0 | |
| Services Balance | Ā | $16 | Balance of Payments | Ā | ??? | |
| Income Received on Investments | $704 | Ā | Ā | Ā | Ā | |
| Income Paid on Investments | $505 | Ā | Ā | Ā | Ā | |
| Net Income on Investments | Ā | ??? | Ā | Ā | Ā | |
| Net Transfers | Ā | $-168 | Ā | Ā | Ā | |
| The balance on the Current Account | Ā | ??? | Ā | Ā | Ā | |
Given this information, what is the value for the imports of goods?
Sometimes this question generates some weird numbers. Remember that you would always add the values in a category to get the total. So the total for the Financial Account is always Capital Inflow + Capital Outflow and the Trade Balance is always Exports + Imports for this table. It's just that sometimes those values being added are negative. If you get a negative answer, you should enter in the negative.
