ATAR Notes: Forum

HSC Stuff => HSC Humanities Stuff => HSC Subjects + Help => HSC Economics => Topic started by: JasonTruong1606 on November 03, 2018, 04:29:04 pm

Title: Can someone help me with this Multiple Choice question please?
Post by: JasonTruong1606 on November 03, 2018, 04:29:04 pm

Can someone please help me understand how the answer is 500bn?

Title: Re: Can someone help me with this Multiple Choice question please?
Post by: Fergus6748 on November 03, 2018, 04:34:21 pm

Quote from: JasonTruong1606 on November 03, 2018, 04:29:04 pm

Can someone please help me understand how the answer is 500bn?

So you have to look at the whole BOP:

BOP = 0
BOP = Current Account + Capital and Financial Account + Net errors and emissions (this isn't included in this particular question, so don't worry about it)
Current Account = (Exports - Imports) + Net Services + Net Primary Income + Net Secondary Income
 = X - 700 + 100 + (-150) + 50
Capital and Financial Account = 200
0 = ((X - 700) + 100 + (-150) + 50) + 200
0 = X - 500
X = $500bn

Hope this helps!!

Title: Re: Can someone help me with this Multiple Choice question please?
Post by: JasonTruong1606 on November 03, 2018, 04:47:41 pm

Quote from: Fergus6748 on November 03, 2018, 04:34:21 pm

So you have to look at the whole BOP:

BOP = 0
BOP = Current Account + Capital and Financial Account + Net errors and emissions (this isn't included in this particular question, so don't worry about it)
Current Account = (Exports - Imports) + Net Services + Net Primary Income + Net Secondary Income
 = X - 700 + 100 + (-150) + 50
Capital and Financial Account = 200
0 = ((X - 700) + 100 + (-150) + 50) + 200
0 = X - 500
X = $500bn

Hope this helps!!

Thank you so much!!