Suppose the Economy of Alpha in 2008 Imported $800 Billion

question 322

Essay

Suppose the economy of Alpha in 2008 imported $800 billion in goods and $400 billion in services. The nation exported $500 billion in goods and $600 billion in services. Citizens of foreign nations also purchased $200 billion of Alpha's assets.
a. What was the merchandise trade balance?
b. What was the balance of payments on the current account?
c. What was the balance of payments on the financial account, and what was the value of Alpha's purchases of assets from the rest of the world?

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Definitions:

Carboxylic Acid

An organic compound containing a carboxyl group, characterized by the presence of at least one carbon atom double-bonded to an oxygen atom and also bonded to a hydroxyl group.

O-H Stretch

A specific stretching vibration in infrared spectroscopy that denotes the presence of an OH (hydroxyl) group in a molecule.

IR Spectrum

A graph demonstrating the infrared absorption and transmission of a substance, providing distinctive molecular fingerprints.

Carboxylic Acid

An organic acid characterized by the presence of a carboxyl group, with the formula R-COOH.