Compute net factor income from abroad

Assignment Help Macroeconomics
Reference no: EM131479983

Question: In 2010 the country of Ikonomia has a current account deficit of $1 billion and a nonreserve financial account surplus of $750 million. Ikonomia's capital account is in a $100 million surplus. In addition, Ikonomian factories located in foreign countries earn $700 million. Ikonomia has a trade deficit of $800 million. Assume Ikonomia neither gives nor receives unilateral transfers. Ikonomia's GDP is $9 billion.

a. What happened to Ikonomia's net foreign assets during 2010? Did it acquire or lose foreign assets during the year?

b. Compute the official settlements balance (OSB). Based on this number, what happened to the central bank's (foreign) reserves?

c. How much income did foreign factors of production earn in Ikonomia during 2010?

d. Compute net factor income from abroad (NFIA).

e. Using the identity BOP = CA + FA + KA, show that BOP = 0.

f. Compute Ikonomia's gross national expenditure (GNE), gross national income (GNI), and gross national disposable income (GNDI).

Reference no: EM131479983

Questions Cloud

Negative aspects of technology growth : What are some of the positive and negative aspects of technology growth?
Management reporting-discuss the allocation issue : MGMT Insurance Ltd. is an insurance company that accepts payments on various insurance policies from businesses across the island
Research about the riots of ferguson missouri : Research about the riots of Ferguson Missouri through articles, news reports etc
Applying ethical theory : Analyse the article/case study from the perspective of four classical ethical theories including utilitarianism, deontology, virtue and contract
Compute net factor income from abroad : In 2010 the country of Ikonomia has a current account deficit of $1 billion and a nonreserve financial account surplus of $750 million.
Discuss the nonreserve financial account : To answer this question, you must obtain data from the Bureau of Economic Analysis (BEA), http://www.bea.gov, on the U.S. balance of payments (BOP) tables.
Should health services be competitive : One of your journal readings this week is a debate on the merits of competition for patients for health services.
Discuss the limitations of the conclusions section of thesis : Discuss the limitations of the "conclusions section" of the thesis.
Define gne gni and gndi : Continuing from the previous question, find nominal GDP for the United States in 2008 (you can find it elsewhere on the BEA site). Use this information along.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd