Current account surplus, Suppose that in 2013, the U.S.

Current account surplus

Assignment Help Business Economics

Reference no: EM131160296

Suppose that in 2013, the U.S. runs a current account surplus of $514 billion. If other factors did not affect the U.S. balance of international indebtedness, it would decrease by $514 billion during 2013.

Suppose that in 2013, the U.S. next external debt decreases by $393 billion from the previous year. Given the current account balance, which of the following can explain this outcome? Check all that apply.

A. The U.S. current account deficit was greater than the country's net borrowing.

B. U.S.-owned assets held abroad depreciated (lost value).

C. The net borrowing of the U.S. was greater than its current account deficit.

D. Foreign-owned assets in the U.S. appreciated (gained value).

Reference no: EM131160296

Questions Cloud

Determine optmal price that both firms should be charging : There are 2firms to consider here from 2 different indusrties. A firm in Indusrty A has MC of production=$150 and they know from historical experience that their Lerner index is 0.35. Determine the optmal price that both firms should be charging.

Salesman estimates that each hour spent calling students : A life insurance salesman spends 9 hours a week on the telephone soliciting new clients. Fro past experience, the salesman estimates that each hour spent calling students, blue- collar workers, and professionals will produce the following number of a..

Private retirement account : Your father just retired with 555,000 TL savings in his private retirement account that pays 0.92% monthly interest. If he wants to withdraw a salary of 6,000TL per month, how long will it take for him to deplete the savings? As a graduate student wi..

Difference between moral hazard and principal-agent problems : Is there a difference between the moral hazard and principal-agent problems? If yes, explain the differences and give an example of a situation where one of them exists without the other. If there is no difference, argue this is one and the same prob..

Current account surplus : Suppose that in 2013, the U.S. runs a current account surplus of $514 billion. If other factors did not affect the U.S. balance of international indebtedness, it would decrease by $514 billion during 2013. Suppose that in 2013, the U.S. next external..

Can he return the extra eight reams : Marty ordered 100 reams of colored construction paper for his after-school art workshops. Bulk construction paper is shipped in 12 ream bundles (the industry standard). The shipment comes and Marty opens the nine bundles (108 reams). Can he return th..

About between long distance and local telephone service : Do you think there are economies of scope between long distance and local telephone service? How about between local telephone service and long distance service? What difference do economies of scope make for the optimal regulatory policy?

What is the zero profit theorem : What is the Zero profit Theorem? Explain briefly. Suppose a grocer in a growing neighborhood comes to enjoy large eco nomic profit by virtue of his special location, which is not available to competing stores. If no new firm can locate nearby, it wou..

Highway department needs to repave section of roadway : A municipal highway department needs to repave a section of roadway. Concrete would cost $500,000, and lasts for 20 years. Asphalt can also be used, but it only lasts for 15 years, and requires resealing after 8 years at a cost of $50,000. At what co..

User Account

All Pages