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Q. Consider how the United States' balance of payments accounts are affected when U.S. banks give two billion in debt owed to them by the government of Argentina.
Answer: In this case the United States builds a two billion dollars capital transfer to Argentina which must appear as a negative two billion dollar entry in the capital account. The linked credit is in the financial account in the form of a two billion dollar reduction in U.S. assets supposed abroad that is a net asset "export" and so a positive balance of payments entry.
Q. Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible. Answer: Since specie inflows drive up domestic prices and restore symmetry in
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een subject to a discrimination complaint as a result of their recent recruitment campaign- They told the recruitment agency that they were looking for ‘young women with flair'' to
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Q. An export subsidy has the reverse effect on terms of trade to the effect of an import tariff. Domestically a tariff will raise the price of the import good, deteriorating the
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