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- Balance of Payment (20 p)
In Table 1 the Balance of Payment for the country Oceania is presented. Use the information shown in Table 1 to evaluate the following questions.
(a) Fill in the cells indicated by * .
(b) Does the economy exhibit a current account surplus?
(c) Does the economy exhibit a capital account surplus?
(d) What kind of macroeconomic policy would you propose to solve any kind of disequilibrium in the balance of payment?
Table 1.
Current Account | | | Capital Account | |
| | | | | |
Exports | | 250.000,00 | | Foreign Holdings | 55.000,00 |
Imports | | 260.000,00 | | Domestic Holdings | 45.000,00 |
| Trade Balance | | | | |
| | | | | |
Services exported | 342.000,00 | | | |
Services imported | 340.000,00 | | | |
| Services Balance | | | Net Error and Omissions | |
| | | | | |
Income received | 14.999,00 | | | |
Income payments | 15.500,00 | | | |
| Income Balance | | | | |
| | | | | |
Transfers received | 50,00 | | | |
Transfers payments | 33,00 | | | |
| Transfer Balance | | | | |
Answer & Explanation
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