Exercise 1.7 Indicate whether the statement is true, false, or uncertain and explain why. 1. The net foreign asset position of South Africa in 2010 and 2011, respectively, was -70.5 billion USD and -19.7 billion USD. The current account in 2011 was -10.1 billion USD. There must be an error in the official numbers. The correct figure should be a net international investment position of -80.6 billion USD in 2011. 2. The fact that the United States made large valuation gains on average over the past 40 years means that the rest of the world as a whole made equally large valuation losses. After all, this is a zero sum game.

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Exercise 1.7
Indicate whether the statement is true, false, or uncertain and explain why.
1. The net foreign asset position of South Africa in 2010 and 2011, respectively, was -70.5
billion USD and -19.7 billion USD. The current account in 2011 was -10.1 billion USD.
There must be an error in the official numbers. The correct figure should be a net
international investment position of -80.6 billion USD in 2011.
2. The fact that the United States made large valuation gains on average over the past 40
years means that the rest of the world as a whole made equally large valuation losses.
After all, this is a zero sum game.
Transcribed Image Text:Exercise 1.7 Indicate whether the statement is true, false, or uncertain and explain why. 1. The net foreign asset position of South Africa in 2010 and 2011, respectively, was -70.5 billion USD and -19.7 billion USD. The current account in 2011 was -10.1 billion USD. There must be an error in the official numbers. The correct figure should be a net international investment position of -80.6 billion USD in 2011. 2. The fact that the United States made large valuation gains on average over the past 40 years means that the rest of the world as a whole made equally large valuation losses. After all, this is a zero sum game.
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