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Question 16 Which of these would not appear in a country's current account? a. value of...

Question 16

  1. Which of these would not appear in a country's current account?

    a.

    value of exports

    b.
    c.
    d.

3.33 points

Question 17

  1. If a country has a $300 billion trade deficit, a balance on income (inflow – outflow) of $200 billion, and no net transfers, what is this country's current account balance?

    a.

    –$500 billion

    b.

    –$100 billion

    c.
    d.

    $500 billion

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Answer #1

Ans 16. Net increase in foreign-owned holdings

This transaction would appear in the country's capital account.

Ans 17. Country's current account balance = Balance on income - Trade deficit = $200 billion - $300 billion = -$100 billion

b) -$100 billion

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