ECMC61_winter 2012 midterm answer.docx

9 Pages

Economics for Management Studies
Course Code
Iris Au

This preview shows pages 1,2 and half of page 3. Sign up to view the full 9 pages of the document.
ECMC61 Midterm Answer KeyWinter 2012Question 1 20 pointsPart a 15 points1 point will be subtracted for each incorrect entryABCGross domestic product330025003700Consumption198018002035Investment480290635Government spending670910700Current account170 500330Nonreserve portion of financial account1475 625 85Official reserve transactions 23255625 330Capital account 85085Part b 5 points 4 pts for explanationChange in a countrys foreign wealth KA KAORTnonresWhen KA is positive this implies the country is a net seller of assets its holding of foreign assets ABC in foreign wealth KA85 500415 Since the change in foreign wealth is negative for B thus B finds its foreign wealth Foreign wealth decreases by 500 1 ptNote You should comment on the countrys KA and ORT not just oneBesides you nonresshould show what happens to all three countries not just what happens to one country1ECMC61 Midterm Answer KeyWinter 2012
More Less
Unlock Document

Only pages 1,2 and half of page 3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.