Answer:
The current account deficit will increase from 1% to 31% of GDP.
Explanation:
National saving and investment identity helps in understanding the determinants of trade and current account balance. The current account is in balance when the quantity demanded of financial capital is equal to the quantity supplied of financial capital.
Here, the government saving or surplus and private savings are the supply of financial capital and investment indicates demand for financial capital.
The current account balance is
= Supply of capital - Demand for capital
= (30 + 2)% - 33%
= 32% - 33%
= -1%
So the current account is in deficit by 1% of GDP.
If the private savings becomes zero, the current account balance will be
= Supply of capital - Demand for capital
= 2% - 33%
= -31%
The current account will be in deficit by 31%.
Answer:
See below.
Explanation:
A)
A US purchase of a European product will create demand for Euros as US authorities would have to use euros in the exchange for the airbus, meaning they would have sell US and buy Euros.
B)
The German firm needs to set up in US and thus would need the local currency to conduct its operations in Carolina, they will have to buy USD by selling euros and thus creating a euro supply.
C)
The college student will have to be using Euros and as such would need to exchange dollars for euros, crating a demand.
D)
As the products are shipped aboard a Liberian freighter, they would be paid by giving out euros in the foreign exchange market. This will create a supply of euros.
E)
When the US economy grows at a faster pace, European citizens will invest in US securities or in USA in general thus creating a supply of euros as they buy USD for investments.
F)
As the US government pays interest to a European bond holder, it will create a demand for Euros as more USD will be exchanged for Euros to be paid.
G)
More people will speculate and invest in dollars as they fear euro losing value, this will create more supply of euro in the market as people look to invest elsewhere.
Hope that helps.
The answer is D) are on the "but side" of Wall Street.
Just read the text. I'm 100% sure. Text below.
The total amount of money being transferred into and out of a business
Answer and Explanation:
By publishing the "List of Goods Produced by Child Labor or Forced Labor" the American government is able to raise awareness among the population that, although child labor is something inconceivable in American society, it still happens with great intensity in various places around the world. This allows the population to become aware of this situation and to stop buying products produced by companies that finance and allow child labor to happen. When they stop using these products, companies suffer a decrease in demand, which can cause significant changes in the production and in the lives of children who need to work.
While consumer pressure at companies that allow child labor is effective, pressure from political and commercial authorities is more effective in bringing about change and ensuring the protection of children, as these authorities can promote severe punishments for those who allow this to happen.
