Compute net foreign investment

Assignment Help Macroeconomics
Reference no: EM132586695

You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.

  • Consumption 350 billion G
  • Transfer payments 100 billion G
  • Investment 100 billion G
  • Government purchases 200 billion G
  • Exports 50 billion G
  • Imports 150 billion G
  • Bond purchases 200 billion G
  • Earnings on foreign investments 75 billion G
  • Foreign earnings on Amagre investment 25 billion G

Given this information we are asked to compute net foreign investment. Some of us are taking earnings on foreign investments - Foreign earnings on Amagre investment = 50 billion G. And others are citing the NFI formula and subtracting imports from exports to get -100 billion G. Which would be correct and why?

Reference no: EM132586695

Questions Cloud

What amount of unrealized loss should be reported : On January 1, 2016, What amount of unrealized loss should be reported as component of other comprehensive income on 2017?
What amount should abc report for accounts receivable : ABC Company's accounts receivable, What amount should ABC report for accounts receivable at December 31, 2017 statement of financial position?
Estimate the world population in 2048 and 2093 : Estimate the world population in 2048 and 2093 (assuming all other things remain unchanged).
What clementine agrees to accept payment in three instalment : What Clementine agrees to accept payment in three instalments?Clementine Koalabear is the sole proprietor of an unincorporated business
Compute net foreign investment : You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.
What is the amount of tax revenue : What is the amount of tax revenue and the government budget? balance?
Shortcomings of the federal reserve bank : What are some of the shortcomings of the Federal Reserve bank?
What is the consumption function : In an economy, autonomous consumption expenditure is $50 billion, investment is $200 billion, and government expenditure
Supply side of the economy : In 2005, was Hurricane Katrina's major impact on the supply side of the economy or the demand side? Please discuss and use a graph in your narrative.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Analyze why the recent 20-year us unemployment

Analyze why the recent 20-year U.S. unemployment and inflation data approves or disproves the short-run Phillips curve.

  What is the price level-what is the velocity of money

Problem: Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion.

  What are your future plans

What are your future plans? Do you think learning economics will play an important role in achieving your goals in the near future? Briefly discuss.

  When the demand curve becomes more elastic

Will the loss in home consumer surplus become greater or less, for a given tariff amount, when the demand curve becomes more elastic?

  Examine the effects of a decrease in foreign

Examine the effects of a decrease in foreign output and foreign interest rate underflexible-exchange rate regime when the goal

  Extensive support on agricultural producers

Why do you think governments in developed nations continue to lavish extensive support on agricultural producers, even though those producers constitute a very small segment of the population?

  How does the federal reserve manipulate our economy

How does the Federal Reserve manipulate our economy to foster economic growth? Research at least three specific policies instituted by the Federal Reserve.

  What is the expected value of the npv

Your company asked you to evaluate two potential projects. These projects are active for 10 years and have no salvage life. What is the expected value of the NPV for each of the projects? What is the standard deviation of the NPV for each of the proj..

  Evaluate the advantages and disadvantages of each economies

Consider two economies: one in which there is no redistribution of income by government and one in which the government enforces equality of income among everyone.

  Current terms and not attend the closing

You have three options for the closing: (1) attend yourself, (2) send an attorney authorized to close only per the previously negotiated terms, or (3) pre-sign all the closing documents per the current terms and not attend the closing. Which of th..

  Explain in detail keynes view on income determination

Explain in detail keynes view on income determination. that is to account for income determination using the keynessian model oif income determination approach

  Explore how government policy can influence economic growth

Discuss how government policies can influence economic growth. Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.

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