Suppose that at the end of 2010, the value of U.S.-owned assets abroad is $15,13

Question

Suppose that at the end of 2010, the value of U.S.-owned assets abroad is $15,131 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,621 billion. What is the U.S. balance of international indebtedness in 2010? -$1,490 billion -$15,131 billion $15,131 billion $1,490 billion -$31,752 billion Suppose that in 2011, the United States runs a current account deficit of $617 billion. If other factors did not affect the U.S. balance of international indebtedness, it would during 2011. Suppose that during 2011, the U.S. net external debt increases by $432 billion from the previous year. Given the current account balance, which of the following can explain this outcome? Check all that apply. Foreign-owned assets in the United States depreciated (lost value). The net borrowing of the United States was greater than its current account deficit. U.S.-owned assets held abroad appreciated (gained value). The U.S. current account deficit was greater than the country's net borrowing.

Explanation / Answer

1. -$1490 billion

2. - $2107 (1490 +617)

3. The net borrowing of US was greater than its current account deficit.

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