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Can someone help me with this Multiple Choice question please?

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JasonTruong1606:
Can someone please help me understand how the answer is 500bn?

Fergus6748:

--- Quote from: JasonTruong1606 on November 03, 2018, 04:29:04 pm ---Can someone please help me understand how the answer is 500bn?

--- End quote ---
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!!

JasonTruong1606:

--- 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!!

--- End quote ---

Thank you so much!!

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