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In this question, assume all dollar units are real dollars in billions, so $150 means $150 billion. It is year 0. Argentina thinks it can find $150 of domestic investment projects with an MPK of 10% (each $1 invested pays

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Assume that a country produces an output Q of 50 every year. The world interest rate is 10%. Consumption C is 50 every year, and I = G = 0. There is an unexpected drop in output in year 0,

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This question asks you to compute valuation effects for the United States in 2004 using the same methods mentioned in the chapter. Use the bea.gov website to collect the data needed for this question: look under the “International” heading.

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Consider the economy of Opulenza. In Opulenza, domestic investment of $400 million earned $20 million in capital gains during 2012. Opulenzans purchased $120 million in new foreign assets during the year; foreigners purchased $160 million in Opulenzan assets. Assume the

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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 with your previous calculations to calculate the following: (Answers will vary because of

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To answer this question, you must obtain data from the Bureau of Economic Analysis (BEA), www.bea.gov, on the U.S. balance of payment (BOP) tables. Go to interactive tables to obtain annual data for 2008 (the default setting is for quarterly

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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 factors located in foreign countries

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Show how each of the following would affect the U.S. balance of payments. Include a description of the debit and credit items, and in each case identify which specific account is affected (e.g., imports of goods and services, IM; exports

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In the late 1990s, several East Asian countries used limited flexibility or currency pegs in managing their exchange rates relative to the U.S. dollar. This question considers how different countries responded to the East Asian Currency Crisis (1997–1998). For the

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Use the money market and FX diagrams from (a) to answer the following questions. This question considers the relationship between the Indian rupees (Rs) and the U.S. dollar ($). The is in rupees per dollar, ERs/$. On