Suppose Japanese GDP for this year is $2,000 billion (well use the U.S. dollar rather...
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Finance
Suppose Japanese GDP for this year is $2,000 billion (well use the U.S. dollar rather than the yen). Suppose Japan runs a current account surplus of 5 percent of GDP in this first period and lends money at the market interest rate of 2 percent. a. What is the value of domestic spending (C + I + G) in this year?
$1,900 billion
$1,950 billion
$1,960 billion
$1,980 billion
If country earns more income on foreign assets than foreigners earn on assets held in that country, its current account will have
A debit entry (negative)
A credit entry (Positive)
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