In 1995, the U.S. economy imported $750 billion in goods and exported $576 billion in goods. However, it exported $219 billion in services and imported $141 billion in services. Receipts of income from abroad were $211 billion while income payments going abroad were $191 billion. Unilateral transfers from the United States to other countries were $34 billion. Calculate the merchandise trade deficit for 1995. Calculate the current account balance for 1995. Also, explain how you decided whether payments on foreign investment and unilateral transfers counted on the positive or the negative side of the current account balance.
In 1995, the U.S. economy imported $750 billion in goods and exported $576 billion in goods. However, it exported $219 billion in services and imported $141 billion in services. Receipts of income from abroad were $211 billion while income payments going abroad were $191 billion. Unilateral transfers from the United States to other countries were $34 billion. Calculate the merchandise trade deficit for 1995. Calculate the current account balance for 1995. Also, explain how you decided whether payments on foreign investment and unilateral transfers counted on the positive or the negative side of the current account balance.
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The following table lists balance of payment current accounts for Country A.
| Current Accounts | |||
| 1. | Exports of goods, services, and income | $169,928 | |
| 2. | Goods, adjusted, excluding military | $94,068 | |
| 3. | Services | 46,889 | |
| 4. | Income receipts on U.S. assets abroad | 31,921 | |
| 5. | Imports of goods, services, and income | 151,536 | |
| 6. | Goods, adjusted, excluding military | 84,707 | |
| 7. | Services | 32,289 | |
| 8. | Income payments on foreign assets in the United States | 35,740 | |
| 9. | Unilateral transfers, net | 9,481 | |
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A. What is Country A's total current accounts? _________$ Total current accounts B. What is Country A's balance on goods? _________$ Balance on goods C. What is Country A's balance on services? __________$ Balance on services D. What is Country A's balance on investment income? (Negative amount should be indicated by a minus sign.) __________$ Balance on investment income |
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