Net International Investment Position Archives

Now assume that in period 1, the country instead runs a much larger current account deficit of 10 percent of GDP. Find the country’s net foreign asset position at the end of period 1, B1. Is the country living beyond its means? If so, show why.

Problem 1 (Net International Investment Position)This question is about the balance of payments of a country named Outland.The currency of […]

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