(Solution) - A Middle East nation suddenly discovers huge oil resources Show -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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A Middle East nation suddenly discovers huge oil resources. Show how its balance of trade and current account suddenly tum to surplus. Show how it can acquire assets in New York as a financial-account offset.
Later, when it uses the assets for domestic capital investment, show how its current and financial items reverse their roles.