Question

Mailings Review View Zou hep V Aa A E. . 21 AaBbCcD Aa BbCcD Aa Bb C Aalb 1 Normal 1 No Spac... Heading 1 Head Styles Paragraph 2. If a county has 25 billion euros of imports, 15 billion euros of exports, and sells 20 billion euros of assets to foreigners, how many foreign assets do domestic residents purchase? 3. In an open economy, gross domestic product equals $3,500 billion, consumption expenditure equals $2100 billion, government expenditure equals $400 billion. investment equals $800 billion, and net exports equals $200 billion. What is national savings? 4. A Ford Escape SUV sells for $24,000 in the U.S. and 720,000 rubles in Russia. If purchasing power parity holds, what is the nominal exchange rate (rubles per dollar)? 5. A can of soda costs $1.25 in the U.S and 25 pesos in Mexico. What is the peso dollar exchange rate (measured in pesos per dollar) if purchasing power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose to 50 pesos, what would happen to the peso-dollar exchange rate?

Answer 1

Answer:

Question 2)

Import I=25 Biilion

Export E=15 billion

Asset sold S=20 biilions

Domestic resident purchase =E+S-I=20+15-25=10 biilions