Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 12

KEY QUESTION Alpha's balance-of-payments data for 2006 are shown below. All figures are in billions of dollars. What are the ( a ) balance on goods, ( b ) balance on goods and services, ( c ) balance on current account, and ( d ) balance on capital and financial account Suppose Alpha needed to deposit $10 billion of official reserves into the capital and financial account to balance it against the current account. Does Alpha have a balance-of-payments deficit or surplus Explain.