Need help with Economics Homework please! (1 Viewer)

[NWO]

I need help with calculating balance of payment questions. Im not really sure whether u add all of them to 0 or something. I got a couple of questions here.



Thanks. Please write the steps down so i can follow XD

 

[ROTUS]

alright, so for the balance of payments: Capital and Financial Account + Current Account=0 (where the Balance of payments simply refers to the two accounts as a whole)
So Current Account has three components: Net goods and services, net primary income and net secondary income.
When the three components of Current Account are added, they must be equal in magnitude but opposite in direction to Capital and Financial. (e.g. If cap + financial= 200, CAD= -200 etc. ) [ Capital and Financial Account + Current Account=0, therefore Capital and Financial= - Current Account and viceversa)
So in the Q11 multiple choice, it is given that capital and financial= 200. therefore Current account = -200
The given components all make up Current Account so: -150 + 50+ 100 AND (X-700) = -200
Hence: X=500

In Q3: answer is B as the calculated Current account= -140 [(500-540) + -70 + -115 +85]

 

[NWO]

thank you so much, you are a live saver XD. Are you really good at economics? I got one more question for you, mate. XD

2011: Discuss the impact of changes in the domestic and global economy on Australia's exchange rate.

It only asks for the IMPACTS. Since it doesn't FACTORS, should i also talk about it as well? Otherwise i have nothing to write about- prob about appreciation and depreciation. Thanks.