In the case of Thailand in 1997, the Thai government was running a large: A. current...
In the case of Thailand in 1997, the Thai government was running a large:
A.
current account deficit, requiring capital inflows from abroad.
B.
current account deficit, requiring capital outflows.
C.
current account surplus, requiring capital inflows from abroad.
D.
current account surplus, requiring capital outflows.
Homework Answers
The correct option is A) current account deficit, requiring capital inflows from abroad.
In the Thai economic crisis of 1997 foreign investments in projects that eventually turned out to be NPAs. Also the imports exceeded the exports. Hence, there was a huge current account deficit, requiring capital inflows.
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In the case of Thailand in 1997, the Thai government was
running a large:
A.
current...
Assume that a government begins to run a large budget deficit. We might expect a simultaneous...
Assume that a government begins to run a large budget deficit. We might expect a simultaneous O A. surplus in the current account because of the inflow of capital needed to cover the budget deficit. OB. surplus in the capital account because of the outflow of capital to other countries. O C. deficit in the current account because of the fall in national saving O D. deficit in the capital account because of the outflow of capital to other countries...
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it is budget surplus, rather than
deficit
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Please help me solve a, b, c, and d 5. (FC Debt): Suppose EAC in Thailand...
Please help me solve a, b, c, and d
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Assume that a government begins to run a large budget deficit. We might expect a simultaneous O A. surplus in the current account because of the inflow of capital needed to cover the budget deficit. OB. surplus in the capital account because of the outflow of capital to other countries. O C. deficit in the current account because of the fall in national saving O D. deficit in the capital account because of the outflow of capital to other countries...
it is budget surplus, rather than
deficit
4. Suppose the market for loanable funds is current in equilibrium, with zero capital inflows or capital outflows and zero government budget deficit. (a) Using a supply and demand diagram, depict this situation. 5 points. (b) Suppose the government begins to run a budget surplus; assuming all else equal, depict the effect this will have on the interest rates and total lending. 5 points. (c) What effect will this deficit have on the...
Please help me solve a, b, c, and d
5. (FC Debt): Suppose EAC in Thailand took out a $6 million loan at the interest rate of 8.0% and the spot exchange rate was B41.0/S when the loan was initiated. EAC had to repay the loan plus interest payment in one year (a) If the spot rate in one year is B44.0/S, what is the foreign exchange loss (in Thai baht) incurred on the loan of S6 million due to...
12. In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases, this produces a tendency toward a trade _and net capital outflow. A) deficit; negative B) surplus; positive C) deficit; positive D) surplus; negative
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Show all your work for full credit owing information on a hypoth Shormation on a hypothetical economy, the Kim Empire, for the year National Income and Product Accounts (NIPA) OP Accounts Government purchases total $2.2B Net of $100M in unilateral transfers A $SOOM government budget deficit Foreign factors located in the Empire earn $280M GNP is $168 Current account surplus of $2B Trade surplus of $1.4B Consumption is $10B Capital account surplus of $160M a. Calculate the Empire's financial account...
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