Suppose the U. S. foreign assets are 67 percent of the U. S.​ GDP, and the U. S. foreign liabilities are 95 percent of the U. S. GDP. ​ Moreover, suppose that 66 percent of U. S. foreign assets are denominated in foreign​ currencies, while all liabilities to foreigners are denominated in U. S. dollars. How will a 13 percent depreciation of the dollar affect ​foreigners' net foreign claims on the U. S. measured in U. S. dollars​ (as a percent of U. S.​ GDP)

8.58% of US GDP is the answer for the required question.

Explanation:

US Foreign Assets = 67% of US GDP

US Liabilities = 95% of US GDP

66% of US Foreign Assets = Foreign Currencies

All Liabilities to Foreigners = US Dollars.

Depreciation rate = 13%

Solution:

Consider the following formula for this problem:

Change in external wealth in US dollar = (Change in foreign assets in dollars) - (Change in foreign liabilities in US dollars)

Liabilities are already denominated in dollars in our instance, but assets are not. As a result, we'll use the formula above to calculate the dollar value of the foreign assets. However, because the dollar value of net external assets fluctuates, we must also consider the rate of depreciation.

Change in dollar value of foreign currency denominated asset = rate of depreciation x Share of the foreign currency

Share of the foreign Currency = 66%

Rate of Depreciation = 13%

= 0.13 x 0.66 = 0.0858 = 8.58%

Hence,

8.58% of US GDP is the answer for the required question.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

none

explanation:

we're are the selections to pick from?