Use the information in the following table on Swaziland\'s international transac

Question

Use the information in the following table on Swaziland's international transactions to answer the following questions (amounts are millions of U.S. dollars): What is the balance of trade ($1,000) What is the current account ($1,000) Assume America imports $50,000 of wheat from Australia. Record this transaction in the balance of payments. ($1.000) You are given the following information about an economy.Incomc: $102 billion Tax: $28 billion Consumption: $48 billion Government spending: $138 billion What is private saving ($500) What is public saving ($500) What is national saving ($500) Based on your answer in part C. is this country running a current account surplus or deficit ($1,000) What impact will your answer in part D have on this country's capital/financial account ($500)

Explanation / Answer

1. Balance of Trade =Exports of Merchandise - Imports of Merchandise = 98859 - 92871 =5988

Current Account Balance = 98859 (Merchandise Exports) +26683(Service Exports)+43720(Investment Income (Receipts))+3736(Unilateral Transfers Credit)-92871(Merchandise Imports)-15406(Service Imports)-27702 (Investment Income (Payments)) = 37019

2. Import of Wheat will be debited and recorded in BOTas -1000

3.

Private Savings = Y - C = 102-48=54

Public Saving= T-G = 28-138 = -110

National Savings =Public Saving + Private Saving = 54-110=-56

Current Account = Savings - Investments = -56-I <0 implies current account deficit.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.