For the following questions, answer the following in terms of how the USA’s balance of payments is affected: A = (+) impact on the current account B = (-) impact on the current account C = (+) impact on the capital account D = (-) impact on the capital account Investors in Thailand borrow money from an American bank so that they can construct a new housing complex.  

Suppose Thailand has a less favorable return on investment compared to other nations. We know that capital will leave Thailand, heading for other nations with more favorable returns. 

Assume that area B is .5 (again using the same type of graph from lecture). From this we know that area A is:  

The USA had a major role in ending the crisis in Thailand by providing them with a large loan which infused a great deal of USD into the economy and propped up their reserves. 

Venezuela’s food situation is best described as: 

The European Monetary Union (EMU) sets fiscal policy, but not monetary policy, for the member countries.  

South Africa is one of the most unequal countries in the world, if not the most unequal country in the world, with respect to income. 

The small nation of Singapore starts to experience a saving that is greater than its level of investment. As a result, we know: (select all that apply) 

Venezuela has systems of price controls, which make prices artificially high. This lowers the quantity demanded of products.  

Trade surpluses are created when more money enters a country than leaves a country through the capital account (through assets sales/purchases and investment).