Question

Decide whether surplus or deficit : Thanks!

1.If the households in a country suddenly decide to save more and consume less that will move the country's trade balance toward

2.If businesses in a certain country decide to expand operations so investment increases that will tend to cause the trade balance to move toward

3.Suppose that J.C. Penny purchases stereos produced in Indonesia that it will sell in the U.S. retail stores. This would move the U.S. trade balance toward

4.Individuals purchase pirated blue ray movies over the internet from a firm based in China. This would move the U.S. trade balance toward

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

As per rules I am answering the first 4 subparts of the question

1: Surplus

Due to lesser demand, the imports will reduce. This will cause balance of trade to increase

2: Surplus

Higher expansion in business means greater exports. This will cause balance of trade to increase

3: Deficit

This means greater imports. This will cause balance of trade to decrease.

4: Deficit

This means greater imports. This will cause balance of trade to decrease.