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Chapter 33: Q. 2CTQ (page 749)

Does Nigeria's central bank appear lo wish for the nation to operate with a trade deficit or a trade surplus? Explain your reasoning.

Short Answer

Expert verified

The quality of the raw ingredients, consumer commodities, and many other supplies, along with their quantity.

Step by step solution

01

Introduction

A comparison is noted in between items balance of payments or an industries trade deficit. The terms of payment is just a measurement typically records the volume of exported goods throughout times. The expression "equilibrium on business" doesn't quite imply either trade flows are "evenly strong."

02

Given Information

A trade balance or significant trade balancing happens when a person purchases more as it provides. Roughly 60out of 200 countries had to have a current account surplus in 2016.

03

Explanation

A trade balance or good trade balanced occurs when a government imports more than it exports, and inversely. The assumption idea multilateral budget deficits are negative or of themselves is highly derided by economic analysts especially economist.

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Most popular questions from this chapter

On Wednesday, the exchange rate between the euro and the U.S. dollar was \(1.33 per euro, and the exchange rate between the Canadian dollar and the U.S. dollar was U.S. \)0.90 per Canadian dollar. What is the exchange rate between the Canadian dollar and the euro?

Suppose that during a recent year for the United States, merchandise imports were \(2trillion, unilateral transfers were a net outflow of\)0.2trillion, service exports were trillion, service imports were\(0.1trillion, and merchandise exports were\)1.4trillion.

a. What was the merchandise trade deficit?

b. What was the balance on goods and services?

c. What was the current account balance?

Outline how exchange rates are determined in the markets for foreign exchange and discuss factors that can induce changes in equilibrium exchange rates

Take a look at Figure 33-5. Suppose that in response to a significant rise in interest in Jane Austen's works and life, millions of U.S. residents suddenly purchase British-published books by and about the famous author and travel to Britain to visit Jane Austen's former home. What will happen to the equilibrium dollar price of the pound, and why? Does the dollar appreciate or depreciate in relation to the pound?

Assume that indicators of improved economic conditions in Japan prompt overseas investors to begin lending to the Japanese government and enterprises. What impact would this have on the yen market? How should Japan's central bank, the Bank of Japan, react to this occurrence in order to maintain the yen's value?
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