Question

Decide whether surplus or deficit : Thanks!

5.The Mexican government pays a U.S. consulting firm for consulting services provided by the firm. This would move the U.S. current account toward

6.IBM purchases computer chips from Singapore that it uses in assembling main-frame computers. This would move the U.S. trade balance toward

7. A university book store in Ireland purchases textbooks produced by a company in the U.S. This would move the current account to

8.A U.S. investor receives a dividend payment from a French firm in which she purchased stock. This would move the U.S. current account to

9.The U.S. Treasury sends an interest payment to the Chinese central bank to settle the coupon due on a bond purchased five years ago. This would move the U.S. current account toward

10.A Mexican company that borrowed dollars from a bank based in the U.S. sends an interest payment to that bank. This would move the U.S. current account toward

11.A Mexican laborer sends half of his pay check to his family in Baja California (Mexico). This would move the U.S. current account toward

12.The United States provides $100 million in aid to Haiti after an earthquake. This would move the U.S. current account toward

13.An American scientist receives $1,400,000 award in connection to the Nobel piece prize. This would move the U.S. current account toward

Answer 1

5. Here, U.S. Government will be receiving funds, hence, U.S. will be in surplus.
6. Here, U.S. Company (IBM) will be giving funds, hence, U.S. will be in deficit.
7. Here, U.S. Company will be receiving funds, hence, U.S. Company's current account will be in surplus.
8. Here, U.S. Investor will be receiving funds, hence, U.S. Current account will move towards surplus.

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